UNIVERSITY SOLVES POTENTIALLY COSTLY WAGE DISPUTE: KUDOS TO SOUTHEAST FOR QUICK ACTION

A prevailing wage dispute over Southeast Missouri State University's Towers renovation project, which was resolved expeditiously without major additional costs to the school, exemplifies progress despite adversity.

Something like this could have caused major delays in construction and run up the cost of the $13 million renovation considerably. As it turned out, the university estimates the additional cost will be but $10,000 to $15,000, and all of the construction should be completed on schedule by May 1.

The university and the contractor, Sverdrup Corp., maintained there was no need for a separate wage determination when the university decided to scrap the original plans for two new chilled-water-system units in favor of a single, larger chiller as part of the renovation of Towers West and North residence halls. But a labor union official disagreed, contending that the chiller work should be separate from the project. He maintained the university should have requested a separate prevailing wage determination for the chiller work and then have sought bids for it.

The director of the Missouri Division of Labor Standards said the changes to the cooling system were significant and she requested that the school comply with normal prevailing wage procedures. The school did so by applying for a separate prevailing wage determination, and the state agency issued its determination. No further objections were raised.

The issue surfaced in January, the state agency issued its determination on Feb. 24, and the wage determination became final on March 28, during which time none of the work was interrupted. We commend all parties for their quick settlement of the matter.