WE DO OUR PRTm
UNIV. OF: FL LIB.
U.S. OEPO-~ '' he Co le for the
rolesionalEnginefsT) on of the Construction Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
-For sale by the Superinlendent of Docluments, Washington, D.C. Price 5 cents
';" ;.;:"P;L~5* ; ii~
.Registry No. 1719--2--18
NATIONAL; RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
DIVIS ION OF TH E CONST RUCT ION
AS SUBMITTED ON AUGUST 31, 1933
AMIERICAN SOCIETY OF CIVCIL, ENGINEERS
PROPOSED CODE OFE ]FAIR COMPETITION FOR THE PRO.
FESSIONAL ENGINEER'S DIVISION~ OF THE CONSTRUC-
The American Societ~y of Civil Engineers, organized in 1852, a,
national association representing t~he Profession of Civil Engaineer'mg=,
pursuant, to t.he intention of the Engineering Profession, insofalr as
t~he practice of the engineering profession is a function of hthe Const~rue-
tion I~ndust~ry, to cooperate w5it~h the Pr~esident of the U'nited States inr
effectuating Title No. I of the Nlat~ionall Indust~rial Riecovery Act,
during the period of thbe emergency, hereby recommends and submlits
for approval pursuant, to Section 3 of said T~itle, thie followig Code~ of
Fair Competition covering relations between professional engineers,
clients or employers, employees and others in respect to al construc-
tion worki; this Code havinga been subscribed to by duly authorized
represent t natives of t he following professional engineering orga niz t ions.
In submlitting this Code for the approval of the Pr~esident and in
tendering their agencies for the enforcement thectrecof, the Amuerican
Society of Civil Engineers and th other organizations subscribing
a. that they are truly representative of the engineering profession in
so far as it is functional to the Construction Industry;
b. that they impose no inequitanble restrictions on admission to their
c. thbat this Code wvill not. permit monopolies or tend toward exces-
sive fees or wages, but will tend toward fair fees and wages aind the
eradication of unethical and unfair practices such as~ "bid-shoppingr "
and enforced unfair competition between engineers, andl toward thle
establishment of better professional st.andards of practice;
d. that this Code is; intended to eliminate unfair competitive
practice and to advance the public interest and engineering standards,
and to improve standards of working conditions and living, and
effectuate t~he spirit of the policies set forth in the Nat~ionall Industrial
ARTICLE I-THE GENERAL CODE
The Code of Fair Competition for the Construction Industry, as
approved by the President of the United States, is adopted and made
a part hereof and shall be attached hereto, and any provisions of this
Code of Fair Competition for Professional Engineers which may be
inconsistent thlerewith shall yield theret~o.
ARTICLES, II-D1IEFINITIONS AND FUNCTIONS
Prqft<~~;.-inal En~ineep.-In the meaning and applicationl of this Code
a profsic nau~l englrine~r shazll be c~nsidrer~e d to be and include anl indi-
viduall, par~tne~r~ rshp, or enginreering corpora~ttio~n legally operating in
responsible cha~~rge of the design or sulpe~rv-ision of construction work;
or a. person in the~ emp~lny~ of t~he! sme? a~nd wrho is regcisterer-d or icensed
in neeur~cldanc e with the provisions of Iniv\ to praelc~icet engineering, or
anzy subd:iv-isio~n thereof, wvithlin anly Sta~te or T'erritory of the Unrited
States; or any person admitted to, or eligible by reason of technical
training for admission to membership in any! no ltionall, state, or
reg~ion al pro~fes-;ional egner o~rgan iz nation, in grades whichi
require, as a constitutio-nall pro-vision, active prlc~tic~e as anl engineer
for not less than, eight ye~r~s and responsible charge~c of engineering
workr for not less thaln one year; active pra~cticet and responsible charge
of elngineerimen~ when func~tiolnnl to the construction industryv to be
determined as definet d in the Constitution of the Aimerie~nn Society
of Civ-il Engrinerers.
Where used hereinafter thne word "engineer"~ shall be construed as
an abbrev\iatio~n of the term "professional engineer" as herein defiined.
I~n the meaning andl application of this Code the functions of an
engineer shall include the economics of, and the use and design of,
mattcrialss of construction alnd the determ--inaltionI of their physical
qualities; supe~rv\isio- n of the constr-u!tio~n of engineering structures;
the investigation of the laws, phenomenal, and forces~ of Nature;
w-hen any- of the same are involved or emrlployed in cocnnectio n w-ith
:fixed~ works for any or all of the following divisions or subjects; irri-
gation, drainage, wa nter power, water supply, flood control, inland
waterw~ays, harbors, municipn]l impr~ovemelcnts, railroads, hlighw\ays,
tunnels, air ports and ailrways, purification of water, sewerage, refuse
disposal, foundations or substructures, framed or hlomogaeneous strue-
tures, buildings and br1idges; they shall include the investigation of,
the design gf, and the iselection of, the forc~e-recsistingr and load sup-
porting membelltrs of stru~c~tures; such as foundations, walls, columns,
beams, girdcer~s, slabls, trusses, and sim~ilar members; and the investi-
gation of, design of, and selection of mchai~nicall, el~c~t~rical, or sani-
tary component parts of st ruc~tures; where such. investigation, design,
a~nd se-lrectio~n requlires; ar krnowledgp of engrineeringr law\s, formlulae and
prac~t i:.e, a knowledge of th~e physical properties of the ma terials used,
and a knowledge~t of the merthodlts used in their installation; and the
supervision and coordination of the design and execution thereof.
Anyone performing any of these functions shall be! considered an
engineer subject to all of the conditions of qualification and experi-
ence in the above deltfinition of a professional engineer, and subject
to all condtitio-ns and regulations of this Code.
Where a Profesio..~ ndl~ Engineer regisytraltion or license law is in
effect, any registe~red or licensed professio-ndl engineer shall be entitled
to practice as an e~nginceerl but shall not be relieved byr that fact from"
any of the pr~ovisiolns of this Code.
EngineePri~nng A~l~stan.-ifIn the~ meaningr and application of thnis
Code an eng~inee~rin g ass~istart~ shall be anyJ person who, not registered
or lic~ensedl by anly state or terri~troy to pralc'tic'e e~ngineer'ing as a
profession and not e~ligible for mlemblership as hereilbefore defined inl
any professional engineer~ing organization providing for mlemb~erslup
as hereinbefore described, is employed to render technical or other
services of a subprofessional nature under the dlirection of an engineer.
Client.-A client, shall be an individual, firm, rcorpor~ation, or gor-
ernmental agency who engages the services of an engineer on a fee
Employer.-A~n employer shall be any individual, firmly, corporation,
or governmental agency who engages the services of an engineer or
an engineering assistant on a salary or wrage basis.
Contrator.--A contractor shall be any individual, firm, corporation,
or agency contracting to perform the wor called for by the en~inleer's
plans and specifications.
ARTICLE III--REQUIRED PROVISIONS
Engineering assistants shall have the right to organize and to deal
collectively, through an agency or organization of their ownm choosing,
with an employer.
No engineering assistant shall be required to join or affiliatle with
any agency or organization, nor shall he be comlpelled to deal with
an employer through such channels. Neither shall he be restrained
from voluntary affiliation wvit~h, or use of, any agency or organize tion .
Each engineering assistant shall recognize the contractual relations
of employer and employee and failure t~o render ~in full the services
agreed upon shall be considered as a violation of this Code.
In filing this code, it is agreed, that as a condition of approval,
the President may impose such conditions, modifications, or additions,
exceptions, or exemptions as he may deem necessary or expedient in
the public interest to effectuate th~e policy established ~in Title I of
the National Industrial Rec~overy Act.
a. Minimum Wta~ges.--No engineer or engineering assistant, em
plowed on a salary or w~age basis, shall be paidl less tha~n the minimum
rates which a~re established regionally or locally by mutual agree-
ments between truly representative groups of employers and em-
ployees or as established or approved by the National Control Coml-
mittee, as defined in Article V'II, through its subordiate regional,
state or local committees, and approved by the President, as provided
by Section 7 (b) of the National Industrial Recovery Act. Where
such rates are not so established, the minimlum rates of wanges shall be
not less than those required by- Article 3--"Minimnum W~ages of the
'Code of Fair Competition for the Construct~ion Industry '"'
b. M~axm',um Hours.-Ma~ximuum working hours for engineering
assistants shall be in accordance with Article 4--"MRaximuml Hours
of the 'Code of Fair Competition for the Construction Industry'".=
c. Age Limit.--Engineers shall not employ anyone less than six
teen years of age, except that persons between fourteen and si-t~een
mayv be employed for not to exceed three hours per day between
7 A.Ml. and 7 P.Mi. on such work as will not interfere w~ith hours of
d. Stabilization, of Em ployment.--Engineers shall administer their
functions so as to provide t~he maximum practicable continuity of
employment to those in their employ.
ARTICLE IVJ--R EGULATIONS GOV'ERNI NG; RELATIONS BETWEEN'
ENVGINEERS AND THEIR CLIENTS OR EMZPLOYERS
Whcre the engineer's services involve a fee of $1,000 or more, his
relations with, and responsibilities to his client shall be evidenced by
duly executed written agreements. Nei their of the contracting parties
shall assume anuy of the duties or responsibilities hereinafter defined
as obligatory on the other nor maty one of the contracting parties
receive any part of the pay- or profit hereinalft~er defined as belonging
to the other.
An engineer shall at a~ll times abide by the "Code of E~thics"
adopted by the American Society of Civil Elngineers, Septemlber 2,
1914, and byT the "Code of Practice of the American Society of Civil
Engineers ", adopted January 18, 1927, which. are appended hereto,
and these codes of ethics and practice are hereby~ made a par~t. of this
Code of Fiair Competition, and subject to the same conditions of
enforcement as if herein written in full. Violation of this Code of
Fair Competition for PIrofessional Engineers" shall justify calncella.-
tion of relations by a client, dismissal by an employer or discipline
by the National Control Committee and/or prosecution at lawT under
the provision of the National Industrial Recovery Act.
An engineer shall not.--a. Acquire, own or otherwise benefit by the
purchase, sale, or ownership in any real estate or business interest
which may be affected by any work for which he shares responsibility,
except with full knowledge and consent of his employer.
b. Owr~n stock in, or have other interest in, or in any way benefit
from the business of a contractor employed on any wiork for wh~ich1 the
engineer shares responsibility, except with the full knowledge and
consent of his employer.
c. Accept any pay or commission, except as clearly stipulated in his
contract or terms of employment, for the use of any materials, patented
device, appliance, tool, or method employed on the work.
d. Accept any fee or gratuity for enginleering or other services
rendered to any contractor or subcontractor engaaged on the work: for
which t~he engsineer is engaged as the client's or employer's represen-
tative, or accept compensation, financial or otherwise for services in
connection with such project, from any person other than his client
or employer, excepfvt wih the full knowledge and consent of his em-
ployer. ~Nothing herein shall be construed to operate against t~he
prevailing and good practice by contractors and subcontractors of
engaging engineers, other than the engineer of record for the wvork, to
render engineering services to them in connection with their engrage-
m~ent as contractors or subcontractors.
e. Specify, dir~ect., invite, or accept engineering designs, studies or
sketches from. a contractor, subcont.ralctor, or su~pplier of materials,
interest~ed in the workr or in bidding on any element of the work,
where such are services herein defined, or definedl in hzis agreements wi th
his client or employer, as being the responsibility anld duty of the
engineer. This does not debar t~he cust~omairy shop and wsorkmiig
drawings, made by contractors for the work to be executed by them,
nor the use of technical trade information issued by producers for the
information of engmieers.
f. _Give any rebate, discount, bonus, fee, or commlission in order to
reduce hais fee, or to influence or prUcur~e employment.
ARTICLE V-UZ~NFAIR PRACTICES
To maintain fair minimuml salaries and wages for engineers and
engineering assistants the Nuational Control Commnittee thro~ughl its
subordinate regional, state or local committees, shall, w~ithlin fours
months after the effective date of thlis Code, establish schedules of
fair mlinimlum ra~tes for al types of engineering services functional
to the Construction Industry. In arriving at these schedules the
National Control Commulittee sharll endeavor to prescribe rates equlirn-
lent to thle average rates which~ obtained in ench region at th beginning
of the; year 1929.
To assure fair competition and p~revent rendering of services below
cost of production, plus overhed, insurance and incidental expenses,
pluis a. reasonable profit., and to insure fair bases for the determiina-
tion of cost-plus-fee terms of emnployme nt., the, NaStionall Control
Commiittee shall develop, with the cooperation of .its subordinate
regional, state and local subcommnittees, standards of cost accounting
writ~h uniform methods of determining overhead, inclusive of princi-
pal's time and other chargeable items.
To maintain fa~ir minimullm rat es of chargeB for the vIariours branches
of engineering practice: functional to the construction industry and
to avoid price cutting among engineers m private practice, but
ijthoult. any ~t~tepmpt. at, price fixing, the N'ational Control Comlmittee
through its subordinate regional, State, or local committees shall
establish schedules of fair minimum.charges, wher practicable, for
all types of engineering services functional to the Construction
Industryv. The recognition of such mlinimlum schedules shall in no
~a~y operate against any engineer whose training, experience, repu-
tat~ion, or specialized practice justifies a higher schedule of charges.
In the operation of this Code, before the establishment of engi-
neering fees as above described, no engineer shall charge for his
services an amount less than that specified in he '"Manual of Engi-
neering Prc~t~ice: ~harge~s for Elngineering Services"" adopted by the
American Socie~ty of Civl Elngineers, September 1930, which is
-In order to eliminate unethical and unfair competitive practices
that violate sound public policy and proper professional procedure:
a. An engineer shall not enter into fee, salary, or wage competitive
bidding with other engineers for a professional engagement.
b. An engineer shall not offer or provide free or contingent engi-
neermng services or free cost estimates in copetitio with any other
engineer whose services have been retained for the work.
c. An engineer employed in a salaried position on full-t~imle basi
shall not solicit outside employment in competition with other engi-
neers nor authorize the use of his name for the solicitation of outside
work. He may serve in a consulting or advisory capacity with t~he
consent~ of his employer.
d. No person shall perform or underts.ke to furnish or be respon-
sible for engineering services unless he is qlualified by education,
experience, and organization and as herein defined.
The engineer should recognize and accept professional responsi-
bility for the correctness, accurney, and safety of his design and for
the completeness of information given to the contractor. He should
not require the contractor to be responsible for any work not called
for and not indicated by his plans and specifications and should not
require that the work be acceptable to the engineers exce-pt in. con-
formity with stipulated requirements of the plans and sp~c-ifications.
Where necessary, the engineer should obtain~ adequate and sufficient
subsoil data, and subsoil tests and he should supply such informa~tion
to the bidders. He shouldl stipulate fair and equitable liability ~and
damallge insurance, and bonus, damage, and indemnity pr~ovlsions,
where any or all of same are required.
The engineer shall observe the rules of fairness in making known all
requirements for the work for which he is responsible.
Arbitration according to the procedure of the America-n Arbitration
Association shall be accepted as the approved method for ad~j udication
of disputes, after decision by the engineer, and precedent to action
Contractors and others furnishing materials shall not include engi-
neering designs- or engineering services with. th~e furnishing of materials
except as hereinbefore provided in Article IV, e, and then only w~henl
making a separate and distinct charge for the same to be paid by- the
owner, said charge to be not less than the usual or pr~escribed profes-
sional charge made by engineers for such engineering designs or other
The engineer shall definitely establish in his design and specifica-
tions, the amounts of tolerance which will be permissible, a~nd shall
include definite provisions for additional installations, replacements,
etc., if such tolerances are exriceeded.
The engineer shall state clearly the time requirements of the various
elements of the work or shall require the contractor to state them at
the time of bidding.
Thne engineer shall not submit his design drawings and specifications
for contractor's bid until he has developed adequate preliminary in-
formation and essential pertinent data. ]He shall provide the contrac-
tor with opportunity to satisfy himself as to the adequacy of the
engineering information given and the practicability of the type and
method of installation shown on the engineer's design and covered. in
his specifications. Adequate information should be issued to all
bidders alike and the engineer should require the successful contralctor
:to recognize and accept his full responsibility for the suc~cessful and
safe prosecution. and completion of the work in accordance with the
contract documents. The engineer shall permit the contra:c-tor to
submit, for the engineer's consideration, plans and details shlow ing the
'contractor's proposed methods of installation, pIfnt layout, and ereee-
tion of tem~rporary structures, and require that th~e engineer's consent
`be received by the contr;c~torir before such methods are adopted.
The engineer shall require that if there be any existingr halzards for
which the contractor is unwilling to accept responsibility, such ex-
ceptions be e-videnced by the contractor prior to the signing of his
Thre engineer, where so engaged, shall provide aldeqluate and suffti-
cient field supervision and inspection of the wiork and shall at all times
be ready to accept or reject any part of the work as the insitallaltion
ARTICLE VI--REGULATIONS GOVERNING TCHE ENGINEER
Recognnizing the inherent differences inr customs and procedu~recs
between tbhe various branches of engineering inv-olvecd in t~he general
field of construction andi thiat i~n any bra~nchl of engineering, customs
and procedures differ defending upon the mngrnitudle and complexity
of a project and upon tdlhe experience and record of accomplishments
of diffrernt engineers, And that some: engineers ar~e especially exert
in highlly speciallized. fields of engineering, this Artile is necessary a
greneralized sta temient of the duties to be u nd ertaken and perform ed by
the engineer. It is good practice that there shall be engaged engineers
skilledl in t~he specialized fields of engi~neering This article does not
coerr detailed items of service incident to highly specialized fields of
engineering, or to preliminary invest~igations or reports as to the
feasibility of projects, but is a statement of minimum services to be
performed by the engineer, thne responsibilities for which. may not be
delegated by himn except that this shall not prevent the employme~nt
of special services for surveys, subsoil investigattions, laborat~or~y
analyses and tests, and similar services under the direction of thle
engaineer as a separate account.
AL. JnInestigationzs.--a. Investigations, surv-eys, and collection of
all necessalry or essential data, assuring the securacy and completeness
of such datla in so far as it controls the type of design, method of
installation, stability of structuret, or comnpleteness or fairness of the
bids on the finished work.
b. Studies, preliminary designs and, where necessary or desirable,
comp ara tivie cos t est im ates of samne, in order to d e termin e thae ulIt~imate
design which will for safety and permanence best satisfy- th2e require-
mlents for feasibility of construction and economy.
c. Whl~ere necessary or desirable a report setting forth: recommnenda-
t~ionns ith sucrh supporting st~atemlents, data and such drawings as
are necessary for a clear understanding of the recommendations and
the reasons t~herefor.
B. Des igns, Con tract DI~r awlags, and Sp7ecifcicaltions.-a. Comple te
des~ign of the1 workr includcingr all necesa~sry design. and contract
drawings showing design details for the complete construction and/or
installation of the work~ covered.
b. Complete specifications describing all elements of the work
covered, particularly such elements as are not clearly or sufficliently
detailed in the drawings, such specifications to outline methods called
for as being acceptable to the engineer.
c. Invitation to bidders containing information suffcent to enable
an experienced contractor to make a complete and fair bi covering
C. AdrJLisory Sperviio of Construction.-a. General supervision
and coordination of the installation of thbe wrork.,
b. Estimates of the value of work installed for partial and fial
payments to contractors when necessary~ or advisable.
c. Survey, record drawings, and certification as to the completion of
con tractor's work.
D. Detailed Res~ident Supervrision of Construction..-a `Resident
supervision and detailed inspection of the work.
b. Field and/or shop inspection and tests of materials and equip-
To effectu~ate? the declared policy of the Nat~ional Indust~rial Re-
covery Act, "to elimiinate uinfair competitive practices", and ""to
rehabilitate indulstry ", the engineer's procedture for the selection of a
contractor by competitive, bidding shall be governed by the following
Fair competition shall include consideration of capasbilit-y, experi-
ence~, honesty, financial. sta~bilityg, price, and timeC.
The form of contract ffect s b~ldding; the foltlow\in g forms of contract
procedure, whlether for entire projects or for any se~greglt~edt com
ponent part thlEre'of, are recognized as proper; (1) lump sum; (2)
guaranteed outside prices; (3) cost of wvork plus a 1fee; (4) unit prices.
TIhe? e~ngineer should limit the hidding to contractors who have
properly prequalified as to reputation, experience,, and responsibility.v
He shall nlot reconurnen d the award of the workr unless -the c~ontrlactor
can demlonstrate to the awarding authorities thatlf he is competent,
t~eelmically and financially. A contrnect bond when required, shall
nlot be held to reinforce or enhance a bidder's credit, stabhility or
capneit.y, but shall be considered only as a protection against business
accidents. Any bid may be a-c~cep~ted at the price originally submlit t.e~d
except as otherwise covered by law.
The engineer shall not sanction or permit the payment of any fees,
bonuses, or other forms of payment by anly bidder for services rendered
in connection with securing an award, nor the disclosure by any con-
tractor of any bid to a competitor or otherwise to induce seco~ndlary
bidding, nor to engage in the unfair practice known-1 as "bid pedd(-ling.""
The engineer shnall require that every rebate, refund, allowa-nce,
discount, commission, or service privilege in wvhateve\r form, he ex-
tended by a vendor to every purchaser under like terms and conditions.
To secure fair competitions as defined hereinlbefore, no product or
service shall be obtained below cost.
Wh~~len practicable, bids shall be accepted wsit.hin 20 days from bid
date and quotations thereon by suppliers of me t~erial shall be held.
subject to acceptance within 30 days of such bid date.
All sales by suppliers of material to a contractor, except for cash,
shall be stopped after 60 days' credit, unless through no fault of t.he
contractor, payments to him have not been made in accordance withr
Amiie ndi nents.-Amendments or revisions to this Code may be
proposed by any truly representative professional engrineering orgasni-
zation providing for membership as hereinbefore d~escribedT, acting
through the N~ational Control Committee hereinafter defined.
National Control Committee.--To effectuate the purposes of this
CodLe! and provide for administrative control within t~he enlgineer~ing
professional, in so far as it is a function of the construction industry,
a National Control Committee shall be established c~omlposed of four1
engineers appointed by the Amler~ican Sodeiety of Civil EnginleerIs, and
one engineer appointed by each2 of the national professionally engi-
neermng or~ganizalt~ions providing constitutional provisions for mlelln-
bershnip as her~einbefore defined in Article II, and which are indicated
in the first paragraph of the Preamble of this Code as ]having sulb-
scribed to thlis Code, and two engineers at large to be select ed by
the beforementioned members to represent the engineers wriho have
no national professionals engineer~inga society affiliation.
This control committee shal have full authority to make al
needful rules and regulations for theo administration and enforcement
of the provisions of this Code. This control committee shall have
full authority to establish such subcommnittees and such subordinate
local, State, and regional comttees and to prescribe such duties,
rules, and regulations as are deemed necessary to carry out the pur
poses of this Code and of the National Industrial Recovery Act.
In t~he establishment of each such state committee (or where there
is no state conunlittee, in eacha regional committee), there shall be
one representative, for each state, from the recognized existing or
hereafter created state professional society, in which membership is
contingent upon legal admission to the practice of engineering withi
that state. Such representative shall be designated by such recog-
mized state society.
The National Control Committtee shall coordinate its acts with
the administrative agency established under the Code of ]Fair Com-
petition for the Const.ruct.ion Industry
Administration Expenrse.-All engineers in so far as their practice
is a function of the construction industry and as defined in this Code
shall bear their proportionate share of the expense of administration
of this Code under such rules and regulations as miay be approved
by the President under Section. 10 (a) of Title I of the National Indus-
trial Recovery Act.
Efectice Date.--This Code shall be effectie when approved by the
President of the United States and shall be applicable only to pro-
fessional engineering services functional to the Construlction In~dustryr
undertaken after such approval date.
UNIVERSITY OF FLORIDA
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