Code of fair competition for the construction industry as approved on January 31, 1934 by President Roosevelt

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Title:
Code of fair competition for the construction industry as approved on January 31, 1934 by President Roosevelt
Portion of title:
Construction industry
Physical Description:
p. 649-667 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Construction industry -- United States   ( lcsh )
Construction industry -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1616-2-31."
General Note:
"Approved Code No. 244."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930202
oclc - 643296046
System ID:
AA00007730:00001

Full Text





ApprvedCodeN..244RegitryNo. 6162-3


NATIONAL RECOVERY ADMINISTRATION


CODE OF FAIR COMPETITION

FOR THE


CONSTRUCTION INDUSTRY

AS APPROVED ON JANUARY 81, 1934
BY


PRESIDENT ROOSEVELT


OUR PART


1. Executive Order
2. Letter of Transmittal
3. Code


'I


I I ,


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


Irt le by the SuApitendent of Documents, Washington, D.C. Price 5 cents


'i.7


.I.. .... .
i1 ii


Approved Code No. 244


Registry No. 1616-2-31























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Approved Code No. 244


CODE OF FAIR COMPETITION
FOR THE

CONSTRUCTION INDUSTRY

As Approved on January 31, 1934
BY
PRESIDENT ROOSEVELT






Executive Order

CODE OF FAIR COMPETITION FOR THE CONSTRUCTION INDUSTRY

An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Construction Industry, and hearings
having been held thereon and the Administrator having rendered his
report containing an analysis of the said Code of Fair Competition
together with his recommendations and findings with respect thereto,
and the Administrator having found that the said Code of Fair
Competition complies in all respects with the pertinent provisions
of Title I of said Act and that the requirements of Clauses (1) and
(2) of Subsection (a) of Section 3 of the said Act have been met:
NOW THEREFORE, I, Franklin D. Roosevelt, President of the
United Atates, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do approve the report and recommendations and adopt
the findings of the Administrator and do order that the said Code
of Fair Competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON,
Administrator.
THE WHmE HousE,
January 31, 1934.
29048--296-10---a4 (649)













The PRESIDENT,
The White House.
Sin:
A proposed Code of Fair Competition for the Construction Indus-
try was submitted to the Administrator on August 7, 1933, by The
Construction League of the United States. The hearing was con-
ducted in Washington on September 6, 1933. The Code was revised
during the recess of this hearing and a reconvened hearing was
held November 20, 1933.
At the conclusion of the reconvened hearing, I appointed a com-
mittee to report on this Code. This committee was composed of
representatives from this Administration and from the interested
employer and employee groups and associations.
The deliberations of this committee were very helpful, but cer-
tain controversial points were not satisfactorily adjusted. The con-
troversial points in the Code have now been satisfactorily adjusted
and the Code, as now submitted to you, has the approval of both
employer and employee groups.
In addition to the establishment of a Construction Code Author-
ity to administer the Code generally, the Code provides for the
establishment of Construction Planning and Adjustment Boards.
The National Construction Planning and Adjustment Board will
consist of ten persons to be selected by the Construction Code Author-
ity and ten persons will be selected by the Labor Advisory Board
from nominations of the Construction employee organizations, and
a disinterested chairman will be selected by the President upon the
recommendation of the Administrator.
This Board will have the authority to establish subsidiary re-
gional boards to be known as Regional Construction Planning and
Adjustment Boards providing equal representation of employer and
employee groups. Such actions as they may see fit to take are sub-
ject to final determination by the National Construction Planning
and Adjustment Board.
The establishment of these Boards is of prime importance as they
provide a method by which Industry and Labor may meet on com-
mon ground for the purpose of planning for the entire industry and
for the adjustment of such disputes as may be submitted to them.
They will make possible the cooperation of employers and employees
in all matters pertaining to their relations, and to all matters perti-
nent to the Industry.
The provisions of the Code providing for these Boards do not,
however, make it mandatory upon the part of anyone to submit
their problems to these Boards nor mandatory upon the part of the
Boards to accept for adjustment such problems.
Provisions of code as to wages and hours.-To effectuate the
policy of Title I of the Act, this Code provides for collective bar-
gaining between truly representative groups or associations of em-
(650)







651


players and employees for a specifically defined region or locality.
The entire United States may be defined as a region. Mutual agree-
ments so reached as to hours of labor, rates of pay, and other condi-
tions relating to occupations or types of operations, when approved
by the President, become the standard of hours of labor, rates of
pay, and other conditions of employment. After the President's
approval of such mutual agreements, it becomes prima facie unfair
competition for an employer to fail to comply with these agreements,
arrived at through collective bargaining. The Administrator will
establish such boards (composed of employers and employees) as are
necessary to investigate all complaints as to such unfair practice
arising under such agreements.
In regions or localities where no such mutual agreement has been
approved, the following maximum hours and minimum rates of pay
will prevail: The maximum hours are limited to 40 hours per week
for laborers, accounting, clerical, and office employees. Upon the
approval by the National Planning and Adjustment Board, work-
ing hours not exceeding 48 hours per week may be allowed on
projects so remote and inaccessible that camps and floating plants
are necessary for housing or boarding of the majority of the labor
employed, or on such projects when working time has been lost be-
cause of inclement weather or unavoidable delays, or on projects in
localities where a sufficient amount of qualified labor is not available
in the immediate vicinity of the work. Hours for accounting, cleri-
cal, or office employees are flexible during a four-week period.
The following classes of employees are exempted from the max-
imum hourly provisions of the Code:
(a) Employees engaged in professional, executive, or supervisory
work.
(b) Employees in establishments employing not more than two
(2) persons in towns of less than 2,500 population, which towns are
not part of a larger trade area.
(c) Employees engaged in emergency work, involving breakdowns
or protection of life or property.
(d) Watchmen.
(e) Other employees who may be exempted in chapters of this
Code specifically applicable only to the divisions or subdivisions
of the industry therein defined.
No evasion of this Code by reclassifications of workers can be
permitted.
The minimum wage rate, varying from $15.00 to $12.00 for ac-
counting, office, and clerical employees, is based on population dif-
ferentials. For laborers, the minimum rate is 40t per hour and shall
not be construed as establishing a minimum rate of pay for other
than common or unskilled labor and shall not be construed to au-
thorize reductions in existing rates of pay.
No minor under the age of 16 years of age shall be employed.
ECONOMIC EFFECT OF THE CODE
Very great potential economic benefits for the Construction In-
dustry are assured by this Code for the Construction Industry
especially in view of its proposed supplementary chapters for the
several functional divisions of the industry.






652


The Code gives to the Construction Industry, for the first time,
the power of coordinated action, which may be used to check the
violent fluctuations in volume of construction, ranging from 100%
above to 50% below normal requirements, and work toward stabiliza-
tion based upon demand; to unify the Industry, locally, regionally,
and nationally for self-government; and to provide unity of action
in meeting national emergecies.
The provisions of the Code designed to prevent practices known
as "bid shopping and "bid peddling" will be productive of fair
competition in contracting for construction work. These provisions,
in conjunction with the provisions as to area agreements concerning
labor conditions, should greatly facilitate strict adherence by all
members of the Industry to such Code provisions as those intended
to prevent bid shopping and bid peddling and thus tend to
create equally the same conditions for labor and members of the
Industry.
Return to normal volume in the Industry can result only through
investment of private capital in construction. The increased cost
of construction, due to an immediate increase in wage rates, will not
be productive of private construction work at the present time.
Such work is optional and depends to a large extent on the relation-
ship of current construction cost to anticipated net income or future
increment in value. In these circumstances, further limitation on
hours will have little effect on increasing employment as construc-
tion volume has sunk to such low levels that it is impossible to spread
the small amount of work among a greater number of people without
reducing all wage payments below a living minimum wage.
The second largest industry in the nation has as yet shown no
signs of recovery under the National Recovery Program although
capable of putting more than half of the remaining unemployed
back to work. This Code for the Construction Industry with its
main and proposed supplementary chapters provides, for the first
time, machinery which could operate according to an unified plan
both to aid immediately in the recovery movement and to begin the
long-term stabilization of the Construction Industry.

FINDINGS
The Division Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmental sanctions and supervision by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be







653


temporarily required) by increasing the consumption of industrial
and agricultural products through increasing purchasing power,
by reducing and relieving unemployment, by improving standards
of labor, and by otherwise rehabilitating industry.
(b) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant asso-
ciations are industrial associations truly representative of the afore-
said Industry; and that said associations impose no inequitable re-
strictions on admission to membership therein.
(c) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(d) The Code is not designed to.and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(e) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
Code.
For these reasons, therefore, I recommend approval of this Code.
Respectfully,
HUGH S. JOHNSON,
Administrator.
January 31, 1934.













CODE OF FAIR COMPETITION


FOR THE
CONSTRUCTION INDUSTRY

To effectuate the policies of Title I of the National Industrial
Recovery Act., the following provisions are established as a Code
of Fair Competition for the Construction Industry, and shall be the
standard of fair competition for this industry and shall be binding
upon every member thereof.

CHAPTER I-GENERAL PROVISIONS

ARTICLE I-APPLICATION

The provisions of this Code shall apply to the entire industry as
hereinafter defined, excluding operations therein undertaken in
accordance with bona fide bids made not more than sixty (60) days
prior to the effective date, or contracts entered into prior to the
effective date; except that the provisions of each chapter incor-
porated in this Code shall apply only to the division or subdivision
of the Industry defined in such chapter. In the case of conflict be-
tween such chapter provisions and the general provisions of this
Code, the chapter provisions shall govern. If any other code of
fair competition or a provision thereof, heretofore or hereafter ap-
proved by the President, shall conflict with this Code or with any
provisions thereof, the Administrator may hold such hearings as he
may deem necessary and thereafter may, if in his judgment justice
requires, grant such stay, exception, or exemption or make such other
determination as he may deem advisable to effectuate the policies
of the Act.
ARTICLE II-DEFINITIONS
SECTION 1. The term construction industry or "the industry"
as used herein shall include the designing and the constructing of
(and the installing and the applying, including the assembling at
the site, of manufactured parts and products incorporated in and
to) :
(a) building structures, including modifications thereof and fixed
construction accessory thereto, intended for use as shelter; and
other
(b) fixed structures and other fixed improvements and modifica-
tions thereof, intended for use in industry, commerce, sanitation,
transportation, communication, flood control, power development,
reclamation, and other similar projects or services; and such related
divisions or subdivisions thereof as may be defined in chapters
hereof and included hereunder with the approval of the President,
(654)





655


SEc. 2. The term division of the industry or division as used
herein shall mean a branch of the industry which has been or may
hereafter be defined in a particular chapter of this Code. The
term "subdivision of the industry or subdivision shall mean
a defined section of a division.
SEC. 3. The term memberr of the industry ", as used herein,
includes any individual or form of organization or enterprise en-
gaged in any phase, or undertaking to perform any of the functions
of the industry as defined in Section 1 hereof, either as an employer
or on his own behalf, including also but without limitation, archi-
tects, engineers, contractors, and subcontractors.
SEC. 4. The term member of the division or member of the
subdivision includes any member of the industry engaged in one of
the divisions or subdivisions of the industry now or hereafter
established.
SEC. 5. The term employee ", as used herein, shall include any
person engaged in any phase of the industry, however compensated,
but excluding members of the industry.
SEC. 6. The term employer ", as used herein, includes anyone by
whom any such employee is compensated or employed.
SEC. 7. The terms President" "Act ", and "Administrator", as
used herein, shall mean, respectively, the President of the United
States, the National Industrial Recovery Act, and the Administrator
of Title I of said Act.
SEC. 8. The term "effective date ", as used herein, shall mean the
thirtieth (30th) day after the approval of this Code by the Presi-
dent, provided that in respect of a particular division an earlier
effective date may be specified in the Chapter applicable to such
division.
SEC. 9. The term sponsors of the Code as used herein means the
following national associations of members of the industry, which
have applied for the approval of this Code and signified their assent
thereto:
1. Construction League of the United States.
2. American Institute of Architects.
3. American Society of Civil Engineers.
4. Associated General Contractors of America.
5. International Society of Master Painters and Decorators, Inc.
6. Heating, Piping and Air Conditioning Contractors National
Association.
7. Cement-Gun Contractors Association.
8. National Building Granite Quarries Association.
9. Contracting Plasterers International Association.
10. Tile and Mantel Contractors Association of America.
11. National Association of Master Plumbers of the U.S.
12. National Elevator Manufacturing Industry.
13. Roofing and Sheet Metal Industries Conference.
14. Mason Contractors Association of the U.S. and Canada.
15. American Road Builders Association.
16. National Association of Metal Furring and Lathing Contractors.
17. Asbestos Contractors National Association.
18. National Association of Building Trades Employers.
29048"--296-107--34-2





656

19. National Association of Builders Exchanges.
20. American Construction Council.
and such other national associations of members of the industry as
shall in like fashion hereafter sponsor additional chapters of this
Code.
SEc. 10. The term this Code as used herein shall mean and in-
clude, unless the context clearly indicates otherwise, all chapters
from time to time included herein, together with any modifications
or amendments thereto.
SEC. 11. Population, for purposes of this Code, shall be determined
by reference to the 1930 Federal Census.

ARTICLE III-HOURS, WAGES, AND CONDITIONS OF EMPLOYMENT
SECTION 1. In each division or subdivision of the industry. as de-
fined in the chapter incorporated in this Code relating thereto, truly
representative associations or groups of employers and employees
respectively concerned, after proper notice and hearing and as a
result of bona fide collective bargaining, may establish by mutual
agreement (when approved by the President as provided in Section
7 (b) of the Act), for a specifically defined region or locality the
standards of hours of labor, rates of pay, and such other conditions
of employment, relating to occupations or types of operations in
such division or subdivision, as may be necessary to effectuate the
policy of Title I of the Act. For the purposes of this Section, the
entire United States may be defined as a region. The terms of such
an agreement between the employers and employees of a division
or subdivision of the industry shall not be binding upon the em-
ployers and employees of any other division or subdivision of the
industry.
After the President has approved any such agreement arrived at
within any such division or subdivision, and after proper notice of
such approval, it shall be deemed prima facie unfair competition for
any employer in such division or subdivision to fail to comply with
the standards of maximum hours of labor, minimum rates of pay, or
other conditions of employment so approved and prescribed by the
President, in respect of the performance within the defined region or
locality of the types of operations concerned; and the failure of
,such an employer to desist from such unfair competition after being
given due notice and opportunity to be heard, shall constitute a
violation of the requirements of this Code.
The Administrator shall establish one or more Boards for each
division or subdivision of the industry concerned to investigate any
complaints of unfair competition as defined in this Section. Each
such Board shall consist of two representatives each of employers
and employees of the division or subdivision affected, selected by
the Administrator from nominations made by such employers and
employees respectively in such manner as the Administrator may
approve or prescribe, and an impartial chairman named by the
Administrator from nominations made by the employer and em-
ployee representatives selected to the Board. Each Board shall
give notice and opportunity to be heard to each complainant and re-
spondent and thereafter notify said parties of its findings and report
them to the Administrator, as a basis for appropriate action to en-






657


force the requirements of this Code. The provisions of this Section
shall not be construed to limit the power of the President, in the
absence of such a mutual agreement, to exercise any authority con-
ferred upon him under Section 7 (c) of the Act.
SEc. 2. Where no applicable mutual agreement, as provided in
Section 1 of this Article, shall have been approved, employers shall
comply with the following provisions as to minimum rates of pay
and maximum hours of labor.
A. No employee, excluding accounting, office, and clerical em-
ployees, shall be paid at less than the rate of forty (40) cents per
hour, provided, however, that the provisions of this paragraph A
shall not be construed as establishing a minimum rate of pay for
other than common or unskilled labor; and provided further that
such provisions shall not be construed to authorize reductions in
existing rates of pay.
No accounting, office, or clerical employees shall be paid at less than
the rate of $15.00 per week in any city of over 500,000 population
or in the immediate trade area of such city; $14.50 per week in any
city of between 250,000 and 500,000 population or in the immediate
trade area of such city; $14.00 per week in any city of between
2,500 and 250,000 population or in the immediate trade area of such
city; and $12.00 per week in towns of less than 2,500 population.
The foregoing provisions of this paragraph A establish a minimum
rate of pay which shall apply, irrespective of whether an employee is
actually compensated on a time rate, piecework, or other basis.
B. No employee shall be permitted to work in excess of forty (40)
hours per week or in excess of eight (8) hours in any twenty-four
(24) hour period, with the following exceptions and limitations:
1. On application of the interested parties and after approval of
the National Construction Planning and Adjustment Board of Re-
gional Boards established by it, an employee may be permitted to
work forty-eight (48) hours in any one week when the following
conditions obtain:
(a) On projects located at points so remote and inaccessible that
camps or floating plants are necessary for the housing or boarding
of a majority of the labor employed.
(b) On such remote projects, when working time has been lost
because of inclement weather or unavoidable delays in any one week,
it may be made up in the following four weeks.
(c) On projects in localities where a sufficient amount of qualified
labor is not available in the immediate vicinity of the work.
2. The foregoing maximum hours of work shall not be construed
as a minimum, either for a day or for a week, and if at any time
in any locality truly representative groups of employees in a divi-
sion or subdivision of the industry, through their chosen represen-
tatives, express by written request to their employer or employers
a desire to share available work in such division or subdivision, the
number of hours of work may be reduced by mutual agreement
between such employees and their employer or employers. In the
event of inability to arrive at an agreement which will not involve
undue hardship on either employees or employers, then such dif-
ference, with the consent of all parties in interest, may be submitted
to the National Construction Planning and Adjustment Board for





658


a decision. The National Board may require the Regional Boards
to secure facts and full information relative to such dispute and
submit the same to the National Board for its information.
It is not, however, the intent of this provision that any such
riedlctiotn will be recommended by the National Board to be put
into effect if it appears probable that undue hardship might be
occasioned thereby to either employers or employees.
3. The following classes of employees are exempt:
(a) Employees engaged in professional, executive, or supervisory
work.
(b) Employees in establishments employing not more than two
(2) persons in towns of less than 2,500 population, which towns
are not part of a larger trade area.
(c) Employees engaged in emergency work, involving break-
down.s or protection of life or property.
(d) Watchmen.
e) Other employees who may be exempted in chapters of this
Code specifically applicable only to the divisions or subdivisions of
the industry therein defined.
4. Accounting, clerical or office employees may be permitted to
work not in excess of forty (40) hours per week averaged over a
period of four consecutive weeks.
C. No employer shall knowingly permit any employee to work
for a total number of hours in excess of the hours herein pre-
scribed, whether employed by one or more employers.
SEC. 3. Where provisions concerning hours of labor or rates of
pay have been established for specific projects, by competent gov-
ernmental authority or agencies (whether Federal, State, or politi-
cal subdivisions thereof) acting in accordance with law, any em-
ployer required to comply and complying with the provisions so
established shall be relieved of compliance with any conflicting
provisions of this Article or of any actions taken in accordance
therewith.
Any employer required to comply and complying with the pro-
visions of a valid labor agreement in force on the effective date shall
be relieved to the extent of his legal obligations thereunder of com-
pliance during the period of such agreement, with any conflicting
provisions of this Article, or of any actions taken in accordance
therewith.
SEC. 4. /. M/iinu age'.-No employer shall employ any person
under the age of sixteen (16) years, or under the age of eighteen
(18) years in any occupation hazardous in nature or dangerous to
health.
rSEc. 5. C'o.shfruction Planning and Adjustment Boards.-There
shall be established within thirty (30) days from the effective date
(if this Code, a National Construction Planning and Adjustment
Board, and said Board shall consist of twenty-one (21) persons, ten
of whom shall be selected by the Industrial Advisory Board of the
National Recovery Administration from nominations of the Con-
struction Code Authority and ten shall be selected by the Labor
Advisory Board of the National Recovery Administration from
nominations of the construction employee organizations, the selec-
tion in each case to be subject to the approval of the Administra-





659


tor, and one person to act as disinterested chairman to be selected
by the President upon the recommendation of the Administrator.
The National Construction Planning and Adjustment Board shall
have for its fundamental purpose the planning and the development
of policies that embrace the broad spirit of cooperation and good
will in the furtherance of all matters that relate to the promotion
of better relations between employers and employees within the in-
dustry and the furtherance of other matters of their mutual interest.
It shall have the authority upon its own motion to select technical
advisers and seek the cooperation of all factors involved in the
stabilization and promotion of the well-being of both employers and
employees in the industry and shall have the authority to make such
rules and regulations for its own conduct as it may deem necessary.
It shall, in its own discretion, following the submission by consent
of all parties in interest of any difference within or between any di-
visions or subdivisions of the industry, give consideration and make
determinations on all such differences as may arise relating to wages,
hours of employment, and working conditions. The decisions of the
National Construction Planning and Adjustment Board shall be
final and binding on all parties in interest, except that in the event
the representative of the Government, the disinterested chairman,
shall dissent from the conclusion, the decision shall be held in abey-
ance until approval or disapproval has been given by the Admin-
istrator.
The National Construction Planning and Adjustment Board shall
have the authority, and upon its own motion shall establish in prop-
erly defined areas, Regional Construction Planning and Adjustment
Boards, and said Boards shall be composed of an equal number of
members from employer groups and employee groups, and it is fur-
ther provided that there shall be no disinterested or impartial
chairmen of said Regional Boards, it being provided that such
Boards shall select from their members a chairman and a secretary.
The National Construction Planning and Adjustment Board shall
upon its own motion submit to the Regional Boards such problems
for study as may in the opinion of the National Board be necessary
and such reports of the Regional Boards shall be submitted to the
final examination of the National Board.
To these Regional Construction Planning and Adjustment Boards
may be submitted matters from their respective areas in disputes
having the same relationship as matters to be submitted to the
National Board, and every effort on their part shall be made to
reconcile such existing differences, with the requirement that their
actions shall in all instances be submitted to the National Board for
final action.
Nothing in this section shall be construed as preventing employers
and employees in any division or subdivision of the industry, as
defined in the chapter incorporated in this Code relating thereto,
from submitting to the Boards provided for in Article III, Section
1, or other Boards similarly composed and selected for consideration
and determination, differences that may arise relating to wages,
hours of employment, and working conditions, subject to the ap-
proval of the Administrator. The findings of fact and determina-





660


tion of such Boards shall be submitted to the National Board for its
information.
The cost of conducting the National and Regional Boards herein
provided for, shall be borne by the Construction Code Authority,
subject to a budget submitted to and approved by it, provided, how-
ever, that the cost of the services and the expenses of the members
of said Boards, shall not be paid by such Authority.
ARTICLE IV-ADMINISTRATION

To further effectuate the policies of the Act and to administer
this Code within the Industry and its divisions and subdivisions,
there shall be established a Construction Code Authority, and Divi-
sional Code Authorities, and other administrative agencies as here-
inafter provided:

A. CONSTRUCTION CODE AUTHORITY

SEcTION 1. The Construction Code Authority shall consist of one
member selected from and appointed by each of the sponsors of
this Code, enumerated in Article II, Section 9 hereof as sponsoring
this Code as originally submitted to the President for his approval;
except that the Associated General Contractors of America may ap-
point thereto not more than four (4) members, one of such members
to be selected respectively from each of the following component
membership groups of said organization: Building Construction,
Highway Construction, Railroad Construction, Public Works, and
other types of construction not heretofore specifically enumerated;
together with not more than three nonvoting members to be ap-
pointed by the Administrator to act as his representatives. To the
Construction Code Authority as so constituted and established there
may be designated not more than one additional member in respect
of each additional chapter hereafter incorporated herein, provided
that no such additional member shall be selected by any association
enumerated in Article II, Section 9 hereof. The method for the
selection of each such additional member shall be described in the
c('rre-)onding additional chapter. The term of such appointments
shall not exceed two years, except that, in the event of code con-
tinuance beyond the limit now established by law, terms may be
readjusted to insure overlapping tenures of office pursuant to a
plan or method approved by the Administrator. Voting members
:tre subject to replacement by the selecting agency with the approval
of the Administrator.
SEC. 2. The Construction Code Authority, acting as a unit or
through any designated committee or department created by it from
its membership, shall have, in addition to any other powers or duties
herein conferred upon it, the following powers and duties:
(a) It may establish rules and regulations for the conduct of its
affairs; and may appoint such committees, agencies, and representa-
tives, and delegate to them such of its powers and duties as it may
deem necessary for the proper discharge of its functions hereunder.
(b) It shall be empowered to cooperate with the Administrator in
making investigations and surveys concerning the functioning of this





661


Code, the observance of its provisions and other pertinent matters
whether at the request of the Administrator or otherwise, and re-
port its findings and recommendations to the Administrator.
(c) It. shall collect from members of the industry and compile and
furnish to the Administrator any reports and other information
required under the Act. Except as may be required for the effective
enforcement of the provisions of this Code the reports of individual
members of the Industry required under this Code shall be confi-
dential and only compiled summaries of such individual reports shall
be furnished.
(d) In order to collect, the information for the Administrator
herein called for, it may require, either directly or through any Di-
visional Code Authority, the registration, in such manner as it may
deem appropriate, of all construction work or services of or in ex-
cess-of $2,000 in value, and in order to defray the expenses of such
registration and of the administration of this Code may apportion
such expenses on the basis of the value of the work or services so
registered, but in no case shall the charge be less than $2.00. The
proceeds derived therefrom shall be apportioned upon an equitable
basis between the Construction Code Authority and such Divisional
Code Authorities as shall cooperate in procuring the registration of
such work or services.
(e) It may propose modifications of or amendments to the general
provisions of this Code which, after submission to the Divisional
Code Authorities affected thereby, may be recommended to the Presi-
dent for his approval, and upon such approval, following such notice
and hearing as he may prescribe, shall have full force and effect as
provisions hereof.
(f) It may exercise the foregoing powers and duties in any di-
vision of the industry for which no Divisional Code Authority shall
have been established; and, if in its opinion the policies of the Act
require, it may recommend to the Administrator that an additional
chapter of this Code be established for any such division of the
industry.
(g) Its members or authorized representatives may attend meet-
ings of any Divisional Code Authority, and it may at any time
make appropriate recommendations to the Administrator to insure
the proper functioning or representative character of any such
Divisional Code Authority.
(h) It may secure an equitable and proportionate payment of the
expenses of its establishment, maintenance, and activities from meim-
bers of the industry.

B. DIVISIONAL CODE AUTHORITIES

SECTION 1. There shall be established for each division of the
industry a Divisional Code Authority which shall, within the limi-
tations provided herein, administer within such division, this Code
and the provisions of any chapter hereof applicable specifically to
such division. The procedure for establishing each such Divisional
Code Authority shall be defined in the chapter pertaining to that
division of the industry. The nonvoting members appointed by the
Administrator to the Construction Code Authority (or their proxies





662


appointed by the Administrator) may serve in like capacity with
respect to any Divisional Code Authority.
SEc. 2. Each such Divisional Code Authority shall, in addition to
ny other powers and duties conferred upon it in the chapter applica-
ble to its division, have the following powers and duties:
(a) It may establish rules and regulations for the conduct of its
affairs and miay appoint such committees, agencies, and representa-
tives and delegate to them such of its powers and duties as it may
deem necessary for the proper discharge of its functions hereunder.
(b) It shall cooperate with the Administrator and with the
Construction Code Authority in making investigations as to the
functioning and observance of any provisions of this Code, at its own
instance (or on complaint of any person affected, and shall collect
from members of the industry and compile and furnish to the Ad-
Iministrator, and to the Construction Code Authority, any reports
ani other information required under the Act. Except as may be
required for the effective enforcement of the provisions of this Code
the reports of individual members of the division required shall be
confidential and only compiled summaries of such individual re-
ports shall be furnished.
(c) It shall study the provisions incorporated in this Code ap-
plicable to its own division, and the operation thereof, and after
submiission to the Construction Code Authority may make such rec-
onimendations to the Administrator as it deems desirable for modi-
fication or addition thereto. Such recommendations, upon approval
of the Administrator after such notice and hearing as he may pre-
scribe, shall become a part o(f this Code and have full force and effect
as ,provisions hereof.
(d) It hall receive and so far as possible adjust all complaints as
to trade practices between members of its division in the operation
of the provisions of this Code applicable to its division.
(e) It may secure an equitable and proportionate payment of the
expenses of its establishment, maintenance, and activities from mem-
bers of its division of the industry.

C. REPRESENTATION AND MEMBERSHIP

SECTION 1. In order that the Construction Code Authority and the
Divisional Code Authorities shall at all times be truly representative,
respectively, of the industry and of the divisions, and in other re-
spects comply with the provisions of the Act, the Administrator
may provide such hearings as he may deem appropriate; and there-
after, if lie shall find that the Construction Code Authority or any
Divisional Code Authority, is not truly representative or does not
in other respects comply with the provisions of the Act, he may
require an appropriate notification in the method of selection of
the Construction Code Authority, or of any Divisional Code Au-
thority, as the case may be.
SEC. 2. The sponsors of this Code who participate in the selection
of any Code Authority or administrative agency provided for herein,
shall submit to the Administrator true copies of their Articles of
Association or Incorporation, Constitution and By-Laws, and other
pertinent rules and regulations and any amendments when made







663


thereto, together with such other information as to organization,
membership, and activities as the Administrator may deem necessary.
In addition to the information required to be submitted by mem-
bers of the industry or its divisions under this Code, there shall be
furnished to government agencies such statistical information as
the Administrator may deem necessary for the purposes recited
in Section 3 (a) of the Act. Except as may be required for the
effective enforcement of the provisions of this Code, the reports of
individual members of the industry required under this Code shall
be confidential and only compiled summaries of such individual
reports shall be published.
Nothing contained in this Code shall constitute the members of
the industry or the members of the Construction Code Authority
or of a Divisional Code Authority, or any committee or agency
thereof partners for any purpose. No member of the industry shall
be liable in any manner to anyone for any act of any other member
of the industry, or any agent or employee thereof pursuant to this
Code. No member of such a Code Authority, committee, or agency
shall be liable in any manner to anyone for any act of any other
member, officer, agent, or employee of such Code Authority, com-
mittee, or agency. Nor shall any member of any such Code Author-
ity, committee, or agency, exercising reasonable diligence in the
conduct of his duties hereunder, be liable to anyone for any action
or omission to act under this Code, except for his own wilful mis-
feasance or nonfeasance.

ARTICLE V-APPEALS

SECTION 1. The Construction Code Authority shall establish, under
rules and regulations prescribed by and subject to the approval of the
Administrator, a suitable agency to be known as the Construction
Appeals Board, to consist of one architect, one professional engineer,
three general contractors and four special contractors.
SEc. 2. The Construction Appeals Board shall hear and determine
the appeals referred to in Section 3 of this Article and shall like-
wise be empowered to determine, in the event of a conflict between the
provisions of the various chapters hereof, applicable to specific divi-
sions or subdivisions of the industry, which of such chapter provisions
shall govern.
SEC. 3. Any interested party shall have the right of complaint
to the appropriate Divisional Code Authority established for any
division of the industry, and of a prompt hearing and decision in
respect of any decision, rule, regulation, order or finding made by
such Authority or its committees or agencies, under such rules or
regulations as may be prescribed therefore and the decision of said
Authority thereon may be appealed by any interested party to the
Construction Appeals Board.
SEC. 4. Any interested party shall have the right of appeal to
the Administrator, under such rules and regulations as he may pre-
scribe, in respect of any decision, rule, regulation, order or finding
made by the Construction Code Authority or the Construction
Appeals Board.






664


SEC. 5. No decision, rule, regulation, order or finding shall be
made by any Code Authority or other administrative agency, ex-
cluding the Boards provided for in Article III hereof, provided
for in or pursuant to this Code, whether made pursuant to the
foregoing sections of this Article V or otherwise, of or in any dispute
between employers and employees, or between groups of employees,
including, in such last-named classes of disputes, any case or con-
troversy whose determination would directly involve or affect any
dispute between groups of employees as to the right to perform
specific types of work or operations, including cases commonly
known as trade jurisdictional disputes.

ARTICLE VI-ADJUSTMENTS

In the event that any member of the industry subject to this Code
shall have contracted before June 16, 1933, to purchase goods, struc-
tures, or parts thereof at a fixed price for delivery after that date
and prior to the expiration of this Code, it is equitable and promo-
tive of the policies of the Act that an appropriate adjustment of said
price be made to meet any increase in cost to the seller caused by
the seller's having signed the President's Reemployment Agreement
or having become bound by any code of fair competition approved
by the President; provided, however, that in view of the fact that
construction operations customarily involve the furnishing of various
goods and structures, or parts thereof, by a continuous series of
independent, long-term contracts and agreements at fixed prices
between various parties, such as owners (including government de-
partments), contractors, subcontractors, and others, such adjust-
ments may be made contingent upon similar appropriate adjust-
ments to be made by all other parties thus participating, from and
including the initial vendor of such goods and structures or parts
thereof to and including the owners of the works or structure upon
which they are used.
ARTICLE VII-COMPETITIVE BIDDING PRACTICES

SECTION 1. (a) The term competitive bidding as used herein
shall mean the submission at or before a definite predetermined time
of comparable proposals by two or more invited persons to an award-
ing authority to execute a specific program of work, furnishing a
definite service or supplying a material specifically required for a
particular project at a stipulated price. This does not include fur-
nishing quotations on standard products.
(b) The term awarding authority as used herein shall mean any
member of the industry who may upon competitive bidding award
contracts.
SEC. 2. (a) The practices commonly known as "bid peddling" or
bid shopping are recognized as unfair and are prohibited. Bid
peddling in effect means the offering by the bidder prior to the
making of an award of a substitute bid or price lower than the one
originally bid without a commensurate decrease in the requirements
of the job. The correction of the abuses resulting from such practice
is obtainable by regulation restricting or controlling bidders.







665


(b) Bid shopping in effect means the effort on the part of the
awarding authority to induce a bidder prior to the making of the
award to lower his original bid price without a commensurate de-
crease in the requirements of the job. The correction of the abuses
resulting from such practice is obtainable by regulation restricting
or controlling the awarding authority.
SEc. 3. (a) Since it is recognized that the preparation of a bid
is a service involving an expense to the bidder and that the inviting
of an unreasonable number of bids is an economic waste, the award-
ing authority shall not invite an unnecessary number of bids.
(b) Only a limited number of alternate proposals shall be required
in connection with any bid, and no alternate proposal of a bidder
shall be considered by the awarding authority, unless the privilege
of alternate proposals is extended to all bidders.
SEC. 4. The awarding authority shall make available uniformly to
all bidders, plans and/or specifications or other requisite information
which shall be sufficiently complete to enable each bidder to prepare
a definite bid in accordance with the regulations herein provided
for. He shall prescribe terms of competition which shall insure
parity of standing to all bidders.
SEC. 5. The awarding authority shall not invite bids from a bidder
unless such bidder shall have demonstrated to the satisfaction of the
awarding authority that he is competent technically and financially
to perform the work, and the ability of a bidder to obtain a per-
formance bond shall not be regarded as the sole test of such bidder's
competency.
SEC. 6. An award if made shall be made at the bidder's original
bid price. It is recognized that competition based solely on price
is sometimes unfair and accordingly the awarding authority may
make an award to a competitive bidder other than the lowest bidder
provided the award is made at such competitor's original bid price.
SEc. 7. The awarding authority shall designate a specific hour and
place for receiving competitive bids. All bids to be submitted by
subcontractors shall be delivered to the contractor at least 24 hours
prior to the time set for the receipt of the bid of said contractor by
the awarding authority. Bids received after such time or from un-
invited bidders shall be returned unopened. All bids shall be re-
quired to be signed by a duly authorized representative of the bidder
and enclosed in a sealed envelope on the outside of which shall
appear its identification as a bid for the particular job.
SEC. 8. The awarding authority shall not at any time prior to the
specified time for the receipt of bids convey to any bidder informa-
tion relating to the price or terms of any other bid in order to
influence the price or terms of such bidder.
SEC. 9. There shall be no collusion between the awarding authority
and any bidder, nor between the different bidders in the preparation
of any bid. The awarding authority shall not use any bid which is
so unduly low as to indicate an error or mistake in estimating with-
out first giving the bidder the opportunity of demonstrating by cost
sheets or other methods the correctness of the bid that he has
submitted.
SEC. 10. The awarding authority shall make an award or reject
all bids for the principal contract with the owner within twenty






666


(20) clays after the stipulated time. for the receiving of bids except
where an extension of time has been requested from the bidders and
has been consented to by two or more bidders. In the case of bids
conditioned upon the award of a previous contract, each succeed-
ing awarding authority shall make an award or reject all bids within
thirty (30) days after the award of such previous contract except
as to such bidders as shall agree to an extension of time. The right
to reject any or all bids may be reserved by the awarding author-
ity, and such rejection shall be made in writing. Where all bids
are rejected, bids shall not be again invited or submitted for the
mere purpose of obtaining a lower or revised price or prices for
substantially the same work previous to the elapse of ninety (90)
days from the date of such rejection, except there be a substantial
change in the plans and/or specifications, or except there be evi-
dence of collusion, or except there be such a marked difference be-
tween the bids submitted and the awarding authority's estimate as
to the valuation of the work as would indicate to the awarding
authority and his Code Authority the necessity of new bids in order
to secure fair competition.
SEC. 11. Before making an award the awarding authority may
require any bidder to name the subcontractors whom such bidder
intends to employ for the various divisions of the work bid upon.
SEC. 12. The awarding authority shall not accept rebates, refunds,
discounts, or other special allowances or services from a bidder
unless included by the bidder in his original bid.
SEc. 18. The various divisions and subdivisions of the industry
may provide in the chapters specifically applicable to such divisions
or subdivisions that members of the division or subdivision shall not
submit a competitive bid, as defined in Section 1 (a) of this Article,
to an owner or any other person, corresponding to an awarding
authority as herein defined unless such owner or other person agrees
to comply with the regulations provided herein governing an award-
ing authority.
SEC. 14 In order to enforce the practice of fair competitive bid-
ding, the Divisional Code Authorities shall provide, if no such
method is provided in the chapter applicable to such division, a
method satisfactory to the Construction Code Authority for check-
ing bids submitted by members of such division either by designat-
ing a depository for the filing of duplicate bids or by some other
acceptable method. The Construction Code Authority may require
such changes in any such method as may be necessary to prevent
conflict between the various methods which may be adopted by the
various Divisional Code Authorities.
ARTICLE VIII-GENERAL
SECTION 1. Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection; no employee
and no one seeking employment shall be required as a condition of







667


employment to join any company union or to refrain from joining,
organizing, or assisting a labor organization of his own choosing;
employers shall comply with the maximum hours of labor, minimum
rates of pay, and other conditions of employment, approved or pre-
scribed by the President.
SEC. 2. Employers shall not reclassify employees or duties of occu-
pations performed by employees with the intent or for the purpose
of defeating the purposes of the Act.
SEC. 3. No provisions of this Code shall supersede any State or
Federal law imposing more stringent requirements on employers reg-
ulating the age of employees, wages, hours of work, or health, fire,
or general working conditions than those contained in this Code.
SEc. 4. No provision of this Code shall be so construed or applied
as to permit or promote a monopoly or monopolistic practice, or to
eliminate or oppress or discriminate against small enterprises.
SEC. 5. Additional chapters to this Code may be submitted to the
Construction Code Authority for submission by it for the approval
of the President but nothing contained herein shall be construed to
prevent any representative association or. group from submitting any
such chapter directly to the President for his approval, provided that
the Construction Code Authority, if then established, shall be given
an ample opportunity to consider and examine any such chapter
prior to its submission to the President to the end that there may be
proper coordination within the industry and between its various
divisions and subdivisions. Upon approval by the President, such
chapter shall become an integral part of this Code the same as if
originally included herein, but any exceptions therein to the general
provisions of this Code shall apply only to the members of the di-
vision, or subdivision of the industry to which such chapter per-
tains. No specific provisions of this Code applicable to its amend-
ment or modification shall constitute a limitation upon any right
to propose such amendments or modifications which may be con-
ferred by the Act.
SEC. 6. This Code, and all the provisions thereof, and of any chap-
ter thereof, are expressly made subject to the right of the President,
in accordance with the provisions of subsection (b) of Section 10
of the Act, from time to time to cancel or modify any order, ap-
proval, license, rule, or regulation issued under Title I of the Act
and specifically, but without limitation, to the right of the President
to cancel or modify his approval of this Code, or of any additional
chapter thereof, or any conditions imposed by him upon such
approval.
Approved Code No. 244.
Registry No. 1616-2-31.




UNIVERSITY OF FLORIDA

3 1262 08585 3066


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