OFFICE OFTHE A~ORNEY GENERAL OFTEXAS AUSTIN a.ruLo~-kH.Xleatfonoroblr, Weaver 8. Baker, Chaiman Board of Control i\ustin, Tsxas

Sear Sir:

na of Article

when through ake 

### or fist8 at bstween the ontrol andthe 

### pr0~id~r0r 8

Your Letter andthe encloauros enumerated revealed ,the

### rouowing ruots:

(1) The speoiriaations mda by you on rhloh %ord Conetruction Companybaaed its bid oontained the follo*sfn%1

. 

## 870 -5onorable :;eavur ii. hkzr, page 2

*L;sJ:.H;i;;*

,I:I:Y;i>, L.;iTy:

“The provisions of the prevailing wage law, Ii. 8. 30. M, Chapter 4b, Aots or the iiceular Semion of the Bortp-thtrd b@slature will be In etreot on this aontract. The stipulated prorailing rate or per Diemwages for thls contract 15: aClass “Per hour

ntr* a***
“Ploatarers n+** Iv+** I)**. $l.W



### The Contruotor ahull 

### r0rreit 8s a penalty to the Jtote ten ($13.00) dollars ros suoh laborer, workma or meohanle employed, ior eaah calendar day, or portion thereof, such laborer, mrkmen, or meohaaio ia paid less than the mid stipulated rates for anywork done under said oontrnct, by him, or by any suboontraotor under him.*
(2) By letter dated Pobruary 4, 1942, the looal Flnsterers’ 

### tinion SO, 183, 

### 00tiri0a the imte Board

### 0r Labor Statlstlc6 thst the prevailing rate Orwage6tOr journey.neu plasterers would be lnareased from $1.50 per hour to $1.75 per hour on oontracte entered into after April 12, 1942. The Local’8 letter stated that the 81.50 rate had been mlntalned for four (4) year*, but thnt increased living oosts neceeoltnted the raise. The letter wasreoelved by the Bureau 

### 0r Labor %atiatics on February 17, 1842. Looal783, 

### arriiiatea with the American yederatfon of Labor, olaims Jurisdlotlon of

## 871

Honorable ieaves ii. RciiWr,page 3

the rollowing countirrr Travis, %StTOP, Bass, LaJWasas, Bayette, Les, Blanoo, Burnett, Caldwell, ~lll~anaoa, Llano, hi Saba, and Dell.



### (3) on

### Aprillet berorr the 

### emotive aato at tbe above rarerred to tioreaso, the Boreao of Labor Stetirtios contacted numerous oontraotors in the Austin 

### areato deter&m ii ths Inorease wasaoaeptable to then, All r6plies received to inqulrirs lndloated the lnoreared rate was scoeptable and 

### noraplies 

### wererecoivsd tothe oontrarr. 

### Lett6rswrrrrmamired iron a numberof oontraatorr whose asMe are ret out fn tha letter from the Comtalosioner of thr Buseauoi Labor Statistios, that ths 

### lnoreaseb rate8 wera agmeablr to timmr kiowrver, idoor Coaetruatioo Company doeln’t appear 08 aaid 

### list. Atter reoelring 

### theravorable replies to It8 inquiry, the Bureauor Labor Statfstfos oorrected its iils to reflect 31.75 per hour aa the prevailing wage soalo ior journeymen plasterers.(4) Your letter stated that you railed to rewire the Aotiae nalled you by 

### theBureau of Labor 6tatiotlas as to the increased scale 0r pay 

### 0r plasterer8 snd you, therrrore, set upthe rate of $1.60 in your speoliioations on the oontraot later awardedto Moore Construction Company.

(5) The letter mm 

### SioosCOAStrUatiOACOrnpSA~ to you 5tated that it wasnot notified at any time prior to 8fgAin6 the coAtraot Hap22, 1942, by the Labor Board, the plastererr’

. repressAtativ0, or anyother SgSAOy,

### oonoer~ing the inorsased rata of pay oi plasterera until Mar 22, 1942, whensaid raot was called to it8 attention by the plasterers’ representative. After aheaking with the State Labor Board, MooreConstructloo Companypaid said prevailing waee, andnowrequests the Board of Control to remunerate it for the lncreaeed amount paid plastarers u&aT it above the amountset out in the speolfioatioas and oontraot, together with the additional coat of insuranoo required anda lO$ profit oa said inoressed amounta,

Underthe above raotr taken rrom four latter aadenO~~SUCO~,you propoundto us three questions as rollowrr

“1. UAdeTthe tsots herein submitted andRS shownby the attaohed file, in the light or the law or this titato, do weowec(ooro Conrtruotion Company on roomrepairs to the State Capitol 

### OAabove desoribed oontract, dated J&y22, 1942, tha sumor 91609.10 for 6422hours of labor for plasterersBonorable :ieaver 8. Btiksr, page 4

paid an addltional Zb#per hour for work pariorned by them on said job ovw and above the $1.50 par hour set out in the oclntraot.

“2. Are we bound to pay for the item or lnsuranoe aet out in suoh rtatement of $225.277
“3. Are weboundto pay the 8183.44 

### profit alatied by the &ore Construction Company in view of the hate 

### and law above oubmittsd?”

It is noted that both the rpeoiflaation for bide and the oontrmt entered into with aore Construction Company eet 

### out that the provisions 

### or Artiole 3169a, Vornon’tt Annotated Civil Statutes, would be in eifeot on this ooatraat. Artiole 5159a, V.A.C.8.. providea a5

### r0~lowat

‘580. 1. Not leas than the general prevailing rate at per diem wages tot work of 8 aiixilar ohnraotsr in the locality in whloh the work is performd, andnot leas than the general prevailing r<lce of per diemwages for legal holiday andovertime wo.rb, shall be paid to all laborers, workmenandwohan~aa aployed by or on bahali af the State oi Texas, or by or on behalf of any county, oity and oounty, city, town, district or other political 6ubdSviai.m of the State, engaged In the construction of public worke, exalustve of maintenance work. Laborerr, worknen andmeohanice employed by oontraotora or euboontraotore in the exeeutlon of any oontraot or oontrnots for publie works with the State, or any ofricer or publia body thereof, or in the execution 

### 0r any oontruot or 0ontract.e tor publia worka, with any county, oity and oounty; oity, town, dlstriot, or other politloaL subdivision or thle State, or any otflaer or publla body thereof, shall be deemedto be employed upon publlo works.

“3Jgo. 2. The publio body awarding any oontraot for publio work on behalf of the State, or on behalf or anycounty, alty and county, city, town, dlatriot or other politioal rubdivision thereof, or otherwise undertaking any publie work, shull aeoertaia the general prevaillcg rate or par diemwages ln the looality in which the work 18to be performed forEkmorablefleatar Ii. Sakes, page 4

each aratt or type of workmanor meohaniaaesded to exeaute the oontrattt, and 8hall speoify tn the call for bids ior said oontraot, and in the eontraot itaalf, what the general prevailin rate of per diemwage8 in the 8ai4 looality ir for eaah oratt or type ot workmannerded to l rooute the contraat, al8o the prevailing rate for legal holiday anti orertfmo 

### work,anditshall be 

### mandatory upon the oontraotor to whomthe aontraot fr awarded, 

### and uponany 8uboontraator under him, to pay not 1088 than the ma148peoifie4 rater to all laborer8, workmenandmeohanior employend by themin the exeoution 

### 0r the aontraot.The

### aontraotor shall forfeit a8 8 penalty to the State, Oounty, oitf andoountf, oitf, town, dlatrlct or othar politioel eubdivf8lon on whose behalf the oontraot Ii! mrrdia or awarded, 

### Ten &Llar# (@J.OO) for each laborer, workman,or machanio employed, ior eaoh calendar day suahlaborer, workmanor ~eohan1 or 

### portion thereor, a IO paid lea8 than the said rrtlpulated rates for any work done under aaid aontraat, by him, or bf any auboontraotor under hira, and the said publio body awarding the oontraot shall aause to be inserted in the oontraot a etipulation to thin effeot. It shall be the duty of ruoh publio body awarding the oontraot, and it8 agent8 and oiriaerr, to take aognlzanoe or aonplaints of

‘I I all violatlona o? 

### theprovlpllons ot this Act aomaitted in the course of the execution or the oontraot, and, whenrnisklngpaymntato the eontractor or monier bemaing due undor said contraot, to withhold and retain therefrom all aicaaand e,munte which shall have been forieited pursuant to the herein said etipulation and the terms oi thie not; provided, however, that no 

### 8uta8hall be 80 withheld, retained or 

### forfelted, except from the tinal puyrsent without a rull investigation 

### bythe awarding body. ft shall be lawful for any oontractor to withhold from any auboontraotor under himsuffioient 8umeto oover any penaltler withh4ld irotahim by the awarding body on aooount of the said nubaontraator’s tailum to oomplp

### withthe ternu of thlr hot, and if payaent ha8already been awl6 to himthe aontraator mayrecover rrons him the amountof the penalty or iorfelture In a ruit at law. *Sea. 3. The ooatraotor 

### andeach ouboontraotor rball keep, or oause to be kept, an aoourete reoord ehowingthe mm%8andoaaupatlonr of all laborerr,IIonorable ,r'iesverIi. i3akar, PUBS 6

worknan andmsohsnics employed by him, in aonneotion with the raid pub110work, and showing also the aotual per diemwages paid to each of suoh workers, whloh record shall be open at all reasonable hour8 to the 

### inspection of tb pub110body awarding the contract, It8 officers andagentl. Veo. 4. Anyoonetruotion 

### or repair work dons under contraot, and paid for in whole 

### or in part out of pub110fund8, other than work done dir8Otly by any publi0 utility 008ipar~y pUr8Ufh to order of the Railroad Co1mlr8lon or other pubblio authority, whether or not don8 Under pub110 supervl8lon or direstion, or paid for wholly 

### or in part out or publio funds, ehall bs held to ba 'pub110 works’ within the ,msaningof thir Act. The tern 'looality in whloh the work is performed* shall be held to 5eeanthe oounby, city and oounty, oity, town, district 

### or other polltlonl subdlrislon of 

### this State in whioh the building, highway, road, sxoavation, 

### or other 8tructun, project, deoelopment or Lmproremeat 18 8itUdOd. in all oa8e8 in whiah the oontreat is awardedby the State, or any pub110body thereof, and shall bo held to meanthe limit8 of tha county, oity and aounty, oity, town, dlstrlot or other polltloal subdlolslons onwkosr behalf the OOutraOt I8 awarded in all other CaSe8. The term 'general prevailing rate of psr diemwages' shall be the rate dotermlnsd upon a8 such rate by the pub110body awarding the oontraot, or authorizln$ the work, whose dsolslon in ths matter shall be tinaL. Nothing in this Bat, however, shall be construed to prohibit the paymsntto any laborer, workman

### or meohanlo employed on any publio work aa afore8aid ot mqrethan the said general prevailing rate

Section8 6 andd of said are 08rrled a8 Hrtiole lB81a 0S the tO11OW83 Aot being penal prOYi8iOn8 Penal Code andprorlde a8

*'Yea. 5. Anyoiflosr, agent 

### or reprssentatire OSthe State or any Polltlosl subdlvlelon, dlstriot or munlo~palitg theroof, whowllfully shall violatr,or omit to oomplf with, anyof the' .honordbls ::savcr 8. Dakur, page 7

provl8ionr of thir Aot, and any OOntrSJOtOror suboontraotor, or agent or representative thereof, doing publio work a8 aforeraid, whoshall hegleot to keep, or cause to be kept, an acourate reoord OS the 

### n3xe8,occupation andactual wages paid to each laborer, workman andn%chanIoemployed by him in oouneotion with the 8aId pub110work, or who shall refuse to allow &00%%8 to 8a:aeat any r%aIonable hour to any person authorizsd to’lnspeot aarc under thir Act, rha11 be guilty of a inI8d4meanor, and ugon oon?iotion shall be punished by a fine of not exo%eding Plve HundredDollar8 $SOO.OO),or **by** I impri8oIment for not %rc%%ding six 6) months, or by both such fine and imprisonment, in th%di8Or4tiOQ of the Co*a.rt. *SW. 6. If any eeotioa, 84ntenc4, otause or part of thI8 Aot Is for any rea8on held to bs uhOOIl8titUtiOIld suoh d4Oi6lOn rha11 Ilotaffeot th4 remalnihg portion8 of this Act. TheLegislature hereby deOlare8 that It would hilve passed thls Act, and each motion, sentenoe, clause, or part thereof, irr48p4otIv% 0Sthe foot thet one or more 84ctloa8, 8entenc48, clauses or part8 thereof be deolared unoonstltut ional.”

ThI8Aot ha8been 00n8tZ?Fndc;;the Texas Court8 in the following oase81 southern &i 8. w. (24) 0061 Awin oanr *. Rsnnels, 119’

674; EUIQAU8tin in 

### whioht Brldue CO~~ehll v. TeaRUe, 149 s. W. (2d) Erla& Oomuaar'I. Teauue. lS2 S. W. (24) 1091; ;he 8UDlWilS

Court reVsr8sd the of Civil Appeal; in~the aameOa84. -judgmnt or th%CourtV

The above QecIsionr are not helpful to u8 in th18 imvtanoe because they involve faot 8ituatIone entirely difrerent from those presented hare.

In the ~oUthemPri8on Company Oa84th6 public body awarding ths wxk never madeany determination of the prerailing wags scale for the type of workdone by plaintlfi,

In the Austin Bridge Coiepany488%there wa8a oontrorerey a8 to whether the type of work don6 by the plaintiff was 8killed or unskillQa labor. 

## 8’75honorable Sje~avcr H. Bakar, page 5

Ih the fLI8tant 0884, weare confronted by a mutual alstake of fact made by the State 2okrJrd of Control and the hfoore Construotion Compehya8 to the prorsllIn$ wag0scale ior plasterer8.

The oontract entered 

### intobetween them 8at out that the provision8 or HouseBill 54, Chapter 45, Acts oi the Begular &melon of the Borty-third Legirlature, (Artiole 5159a, V.A. 0. 8.. and

### Artiole155la, Penal Code) would be la @Meat on the oontraot. Both parti to the oontract were bound by 8aId hot and &ore COnstrUotlOn Co!qm~y paid the pretaillng rate on ascertaining what it wa8.

It is %lem%ntsrythat whsre there 18 a mutual uilstake or faot that a oontraot will be r%iormedto express the true intent of 

### thepartie8, eraspt whenrights of third pertie8 twre Intsrvened, 

### andin 808%other ihstsnCs8 not involrea here. The rule 18 8tated 10 “RELfTATE-i?X;T OPTifSI&#OF CONTRACTS,”

Vol. 2, page 968, Section 504, a8 ~ollowor

n* * * where both parties have an ldentloal intention ce to the terrm to be embodied la a propoasa written oonveyanos, assignment, oontraot or 

### disohmge,anda 

### writingeseoutsd by thea la materially at variance with that intention, either party oan get a dears% that the writing shall be raformed so that It shall express the intention oi the parties, ii innooent third parsons will hot be unfairly afr%Oted thsreby.*

Promthe above, It 18apparent that our 

### an8werto your first qu48tlon ir that the State Board of Control is suthorlzed to pay Moore Construction Coxpsuythe sumOS#1,809.10 being an additional twenty-five (28#) cent8 per hour for 6422 hour8 oi labor by plastererl, 8am having besn paid said plaeterer8 aocordi.ag to the letter from Moore Construction Companyin addition to the 31.50 $ r hour pmvlded In the oontroot and said total psymentof *1.75 per hour being ths rsoognizsa pmrailing wage scale for plasterers In this vloinlty.The amwer to tour second queetlon in aontrolled

by tho answer to the first quecrtloa. TheBoard of Control is authorized to paythe amountof additional insurance paid by the contraotor whloh wanooOasioned by auld oontraotor paying the prevailing wageaoalo prosoribed bylaw instead ot the bwar raalo eet out in the aontraot*

Our anawor to your third quo&ion ID that the Board or Control ia not authorized to pay tea (lO$) per oent profit on the two above rororred to itomr, naavlyr tho additional amount paid tho plastererr an4 the addltioaal insuranoo pal4 oooarlonod by tho higher r&o of pay, baoauaotho Oontcaot lnvalved hero was not a Ooet ~1~8oontroot, no atandardlr are ret up in ram to ebowhowprofitr aro to be arrived at, or oten to showthat tho oontraotor oxpeotod to makea aaah proiit on thla traaeaotion.

Idew tines oontraotr era madewithout erpeotation or oash prorlt Lnorder to koop regular vmrkmon miploged, to obtain future business, oto.

The Itemawhioh wehave hold subjeot to pIpOAt hero wero pald by tho oozitraotor in oonplfanoo with Ststo law. The ltmn of ten per oent (lop) profit on maidpaymenta doer not tall within this oatogory, Very truly youra, ATTORNEY

GiNERAL

OFTEXAS