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Registry No. 1610--02
NATIONAL RECOVERY ADMINISTRATION
PROPOSED CODE OF FAIR COMPETITION
BUILDING CONSTRUCTION AND
BUILDING MATERIAL INDUSTRIES
AS SUBMITTED ON JULY 5, 1933
uc. no 'ABB
The Code for the Building Construction and Building Material Industries
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
For sale by the Superintendent of Documents, Washington, D.C. T
-' Price 5 cents
CODE FOR BUILDING CONSTRUCTION AND BUILDING
Approval is asked of the President of the United States by Building
Industries of America, a Service Organization. Charles J. Columbus,
Managing Director, National Headquarters, Raleigh Hotel, Wash-
SECTION 1. Purpose of Code.-The purpose of this Code is to apply
to the Building Industry generally the principles of the Industrial
Recovery Act, namely, "An Act to encourage national industrial re-
covery, to foster fair competition, and to provide for the construction
of certain useful public works, and for other purposes", by the legal-
ization of these rules of fair practice.
The effect of the Code will be to give increased employment and to
safeguard public welfare through the elimination of abuses harmful
not alone to the worker but to the investor, large and small.
This Code is designed to improve the standard of living of workers
and employers alike in the Building Construction and Building Mate-
rial Industries. It will give the worker and the employer a living on
an adequate standard and enable the investor to buy on a fair market,
free from unsound economy. It will ensure fair dealing for all through
a fair price, quality-defined system of fair dealing.
The competent and the quality-minded will thus be served in emer-
gency and, it is believed, will be secured in the same manner in the
SEC. 2. Definition.-(a) "Building Construction Industry" shall
include all persons, firms, or corporations engaged in the business of
erecting buildings or structures, and the repair thereof, through con-
tract or agreement of any kind.
(b) The definition "Building Material Industry" shall include any
individual or set of individuals or corporations engaged in the manu-
facture or distribution of commodities used in construction work.
SEC. 3. Objects of Building Industries of America.-(a) Building In-
dustries of America is a service organization operating to promote the
good and welfare of active and associate members and clients engaged
in the Building Construction and Building Material Trades in the
United States of America; also persons interested in but not engaged
in the said industries.
(b) Building Industries of America. pledges itself, its clients, and
members to support the Industrial Recovery Law, approved June 16,
1933, and the Code for the enforcement of fair practices in all phases
of the Building Construction Industry and the Building Material
Industry in the United States of America.
SEC. 4. Classification of Activities.-General Contractors; Material
Dealers; Contingent Insurance; Masonry; Floor Finishes; Lathing
and Plastering; Cut Stone; Millwork; Roofing; Sheet Metal; Glass
and Glazing; Ornamental and Miscellaneous Iron; Hardware; Heat-
ing and Ventilating Systems; Electric Wiring; Elevators; Vacuum
Cleaning System; Refrigeration; Iron Doors and Shutters; Sidewalk
and Roof Lights; Chutes and Conveyors; Interior Marble and Stone;
Terrazzo; Mail Chute and Box; Alterations to' Existing Work;
Models and Carving; Yard Work; Brick, Concrete, or Steel Stack;
Subcontractors; Bonding; Excavation and Foundations; Reinforced
Concrete; Terra Cotta and Gypsum Fireproofing; Arch. Terra Cotta;
Granite; Carpentry; Hollow Metal Windows; Fireproof Doors and
Trim; Painting and Decorating; Structural Steel; Plumbing System;
Power Plant; Lighting Fixtures; Pneumatic and Compressed Air
Systems; Sprinkler System; Elevator Enclosures; Metal Sash and
Frames; Bronze Work; Vault Doors and Equipment; Tile Work;
Furniture and Equipment; Revolving Doors; Scaffolding; Acoustical
Treatment and Sound Proofing.
SEC. 5. Services.-Building Industries of America serves its mem-
bers through information and counsel on the state of the Building
Trade, reflects opportunities for new business, acts as counsel in the
interpretation of the National Recovery Law and the Code, and
SEC. 6. Active Alembers.-Any individual, firm, or corporation en-
gaged in any form of building construction, in services or materials
shall be eligible to Active Membership in Building Industries of
America provided they are known to be competent and experienced
in their respective lines and agree to abide by the terms of the Code
as approved by the National Recovery Administration. Dues are
$40 per annum per member, payable semiannually in advance.
SEC. 7. Associate members.-Any owner, architect, engineer, crafts-
man, or citizen other than those actively engaged in the Building
Industry may become Associate Members on application and accept-
ance and the payment of dues in the sum of $10 per annum, payable
semi-annually in advance.
SEC. 8. Clients.-Any individual, firm, or corporation may become
a Client for whom a special service is to be rendered, provided they
conform to the rules respecting Active and Associate Memberships
and pay such fees as will be required for the services to be rendered.
Clients shall be bound by the National Recovery Law and the Code.
SEC. 9. Memrbership.-All individuals, firms, or corporations desir-
ous of becoming members shall make application to the National
Headquarters of Building Industries of America in Washington,
D.C., stating corporate title and character of business; experience;
officers, if any; names of those who were the last four employers;
give two financial and two character references, and check for $20,
which will pay dues for the first six months from date of acceptance
SEC. 10. Resignation.-Any Active or Associate Member or Client
may resign on payment of accrued obligations.
SEc. 11. Identification of membership.-All Active and Associate
Members will be supplied with certificate of membership for posting
in the home office, with copies for use at job sites.
SEC. 12. Bidding.-(a) Owners, architects or engineers, or others
seeking bids shall supply every bidder with a complete set of plans
and specifications and give a reasonable intervening time for prepara-
tion of bid.
(b) All bids or estimates of projects involving $500 or more shall
be in writing, computed from plans and specifications duly approved
by municipal, State, or Federal authorities. Each bid must be
accompanied by names of sub-bidders and the name and source of
(c) No bids shall be submitted or accepted where the specifications
fail to provide a definite time and place where they shall be opened
in the presence of competing parties.
(d) No bid shall be amended after filing but may be withdrawn
prior to acceptance.
(e) Provision must be made that the project shall be awarded to
the lowest bidder who can qualify with the terms of the specifications.
SEC. 13. Noncompetitive work.-In all instances of noncompetitive
undertakings the rules of practice shall be the same as set forth in
the Code and the National Recovery Law.
SEC. 14. AMinimum wages--
Unskilled Labor ------------------------------------ $0.50 per hour
Skilled Labor -------------------------------------_ .75 per hour
Skilled Mechanics----------------------------------- 1.00 per hour
Highly Skilled Mechanics_---------------------------- 1.50 per hour
SEC. 15. Maxirmurm hour.s.-Five-day week of six hours per day.
SEC. 16. llanual labor of partners or officers.-No more than one
member of any firm or partnership shall work with his tools, and he
shall observe the conditions of the Code.
SEC. 17. Afaximrumi wages and working conditions.-(a) Wages in
excess of the minimum defined by the Code shall be the subject of
conference between employer and employee. Each shall appoint
three representatives. In the event of dispute, if the matter in con-
troversy affects wages, hours of labor, or other features of the Code,
the matter shall be referred to the Industrial Recovery Administration
for decision in accordance with law.
(b) Pending the decision of the Federal Authority and in the event
that decision is not reached within ten days of date of bid filing in
any jurisdiction the hours and wages and conditions shall be is set
forth in the Code for the duration of the job.
SEC. 18. Jurisdictional and other disputes.-Jurisdictional and other
disputes shall be handled and determined in the manner prescribed
for the fixing of wages and working conditions.
SEC. 19. No stoppage of work.-There shall be no stoppage of work
pending the determination of any dispute, save for failure to meet
SEC. 20. Costs of doing work.-(a) All individuals, firms, or corpo-
rations engaged in the Building industry shall keep an accurate
record of all costs, which shall be open to the inspection of any duly
authorized authority. Records shall show the quantity of and the
price paid or contracted for of all purchases or commitments, subdi-
vided as to projects and the source of purchase.
(b) Administration costs and general overhead shall be kept sep-
arately. Six percent interest shall be added to this and the total
cost of general administration prorated to each project.
(c) All wages, salaries, engineering costs, and expenses of every
character and kind for each individual project shall be kept in a sep-
arate record, and the total charged to the project.
(d) All material costs and estimates shall be kept in a separate
record according to project.
(e) All equipment of a usable nature, such as buildings, machinery,
and other equipment, shall be charged to and collected from the
project as used in an amount comparable to their fair rental value,
together with amortization allowance and the addition of 6% on the
SEC. 21. Material dealers' costs.-All material dealers shall keep an
accurate record of all purchases, expenses and sales, including out of
pocket and assumed obligations of every character, including admin-
istrations cost and general overhead, wages, salaries, rents, taxes, and
do all things provided in Section 20 of the Code, including an allow-
ance for amortization, obsolescence or damaged goods, and all other
There shall be a minimum gross profit of 25 percent.
SEC. 22. Unsalable or slow-moving material.-Dealers in material
shall give public notice to the trade, through newspaper, trade paper,
or the mails of price changes in unsalable or slow-moving material.
Such price changes shall not affect contracts or verbal agreements
already made at higher prices. Violations thereof shall be punish-
able in accordance with the procedure provided in Federal and State
SEC. 23. Operating Funds.-Each Contractor or Material Dealer
shall make a charge equal to 6% for all monies held or borrowed for
the financing of a. given project and assess that amount and include it
in the contract or estimated price of all projects, which shall be a part
of the enumeration of all the other costs of doing business.
SEC. 24. Gross Profits.-Gross profits shall be added to the antici-
pated cost of the project, as shown by material and labor surveys as
set forth in this Code and all other out-of-pocket expenditures. Gross
profits shall be 10 percent of the above total for General Contractors or
others contracting for an entire job, and 15 percent for subcontractors.
SEC. 25. Collective Bargaining.--The right of Employees and Em-
ployers to Collective Bargaining, one with the other, is recognized.
Such bargaining and wage determination must be made in advance of
completion of estimate or estimates on work and the presentation of
bids to permit of the following of the procedure as already outlined
in this Code. Wage scales current on the date of bid presentation
shall be the scale for the duration of the project.
SEC. 26. Allocation of Funds.-Funds accruing from a given project
shall be expended exclusively on that project.
SEC. 27. Payments and Releases of Liens.--(a) Wages shall be paid
weekly, on a given day. When employees are released they shall be
paid on the hour of dismissal or in accordance with the working rules
of the Union employee.
(b) Payments for material furnished shall be made monthly or in
accordance with specific agreements not inconsistent with this Code,
but in no case shall payment to material dealers be less than the
amount received for materials in any particular payment.
(c) There shall be no release of liens by any holder thereof or party
thereto until a full settlement has been made in cash or a usable check.
SEC. 28. Retents and Final Settlements.-No party to a Building
Construction Contract or Agreement shall, on completion of the work
in accordance with contract, retain a sum greater than 15% of the
gross amount of the contract price beyond thirty days after the
completion of the contract.
SEC. 29. Commissions, Preferential Discounts, Illegal Rebates, and
Belittling of Competitors.-It shall be unlawful for any individual, firm,
or corporation engaged in whole or in part in the Building Industry
to give or accept or be a party to any of the above-named acts or
those of a like nature, such as any special discount or privilege not
a part of the specifications or other written agreement for the job
executed between a general or subcontractor, material or supply dealer
or agent; nor to engage in any form of collusion the effect of which is
to circumvent the welfare of owner, architect, competitors, general
or subcontractors, or any other person or persons in interest, nor
acts which shall be contrary to public welfare.
SEC. 30. Other Unfair Practices Declared Illegal.-(a) It shall be
illegal for any owner, architect, or engineer, material dealer, general
or subcontractor, or others to give any secret or preferential:
Price discrimination Dealer aids
Quantity discounts Free deals
Quality discounts Seasonal reductions
Terms of sale Ad allowances
Allowances Free goods
Or to indulge in-
Substitution False or misleading advertising
Commercial bribery Interference with contracts
Misrepresentation Irregular billing dates
False invoicing Free service
Freight absorption Refunds
Piracy of design Unearned discounts
Dumping Confidential prices
Misbranding Special service.
or other acts of unfair practice.
(b) The naming, marking, or billing of materials, fixtures, appa-
ratus, or installations of products and free labor, for the purpose of,
or with the effect of misleading or deceiving purchasers, is con-
(c) The acceptance of securities, bonds, mortgages, stock, or
promissory notes, at other than their true value as whole or part
payment for work done is price discrimination and is considered
(d) The bidding on jobs without sufficient time for preparation or
proper estimate or without an individual copy of the plans and speci-
fications being available to bidder as a basis for the bid is illegal.
(e) The failure of architects, engineers, and owners to award con-
tracts promptly to the satisfactory bidder in each class of work
upon his original bid results in unfair methods of competition; and
the failure of architects, engineers, and owners to keep confidential
the bids received and opened prior to the time that all bids upon such
work have been received and opened is illegal.
(f) Undertaking to complete a contract upon which another con-
tractor has temporarily stopped work because of nonpayment of
amounts properly due is illegal.
(g) The payment, or promise to pay, to any employee or agent of
purchaser, or prospective purchaser, of a commission or consideration
of any character for the purpose of inducing or compensating for the
sale either with or without the knowledge of the principal purchaser
UNIVERSITY OF FLORIDA
3 1262 08850 3155
REPORT OF VIOL.Jau o :: ..:F.A
All violations shall be reported to Building Industries of An o%, :..i.
at Washington, D.C.
SEC. 31. Safeguards for Employees.-All Employers of Labor 4 .
any character or kind i the Building Construction Industry or.thi,:.i,: ft :|'
Building Material Industry shall exercise reasonable safeguards to ':
protect the health, safety, and well-being of employees. They ar
required to carry insurance in an adequate amount. or otherwise
indemnify the said employees against peril arising out of accidents
occurring in, on, or out of a job in accordance with the laws of the
States, District of Columbia, or other civil jurisdiction of the -United
States of America.
SEC. 32. Apprentices, Beginners, and Learners.-No male or:female,
under the age of sixteen years, shall be employed in any capacity in
the Building Industry. Such persons sixteen years of age and oveK
may be employed at a minimum rate of pay of two dollars pet day;t ::
maximum of 130 hours per month and not more than six hours in
any one day of a five-day week.
SEC. 33. Code Applies to All.-It is agreed that the obligations
imposed by this Code shall be made a part of any other Code approved
for the Building Construction and Material Industry.
SEC. 34. Reports to Building Industry of America.-All Active and :
Associate Members and Clients of Building Industries of America
shall make report on the last day of each month of the number of
projects on hand, the number of employees and the hours worked
by each in the said month and the minimum wages paid.
SEC. 35. Violations.-All violations of the Code shall be reported
to the National Headquarters of Building Industries of Anierica in
Washington, D.C. Such reports must be in writing. This organiza-
tion will cause an investigation to be made and redress sought. :
SEC. 36. Penalty for Violation.-The penalty for violation shall be
those set forth by law and expulsion from this organization.
SEC. 37. Reports to Industrial Recovery Administration.-Building
Industries of America shall make reports to the Industrial Recovery
Administration, as called for by the President of the United States.
SEC. 38. Amendment of Code.-(a) This Code may be amended,
or modified, with the approval of the President of the United States,
if it appears that public welfare may best be served thereby.
(b) If any provision of this Code is declared invalid or unenforce-
able the remaining provisions shall remain in full force and effect.
BUILDING INDUSTRIES OF AMERICA,
(Signed) CHARLES J. COLUMBUS, Managing Director.
Executive Office: The Raleigh Hotel, Washington, D.C.
DATED JULY 5, 1933.
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