Fix the Custom Fabrication Loophole

There’s a growing problem in Pennsylvania’s construction economy, and it comes down to a loophole in state law.

Right now, contractors can pay workers less for public projects based only on where the work happens. If it’s done off-site instead of on the jobsite, wages and standards can drop. That creates a race to the bottom that hurts workers, responsible employers, and taxpayers alike.

House Bill 846 and Senate Bill 908 would fix this. These bills ensure that workers contributing to public projects, whether on-site or off-site, are paid fairly under prevailing wage standards.

This matters now more than ever. The industry is changing. More work is being done in shops and facilities instead of directly on construction sites. Without updated protections, that shift opens the door to:

  • Work is being outsourced beyond Pennsylvania’s borders
  • Lower wages for Pennsylvania workers
  • Fewer opportunities for local contractors
  • Reduced tax revenue for public investment

When public dollars fund a project, the benefits should stay here in Pennsylvania—not leak out through outdated policy gaps.

These bills will:

  • Bring consistency to how workers are paid across public projects
  • Level the playing field for responsible contractors
  • Keep jobs and economic activity in Pennsylvania
  • Ensure taxpayer investments deliver real local value

This is about updating the rules to match today’s economy, and making sure workers aren’t penalized for how the job gets done.

Tell your lawmakers: it’s time to fix the loophole.