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Registry No. 1616-78
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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
WATER WELL DRILLERS
AS SUBMITTED ON AUGUST 30, 1933
WE DO OUR PART
The Code for the Water Well Drillers 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
For sale by the Superintendent of Documents, Washington, D.C. - -Price 5 cents
AMERICAN ASSOCIATION OF WATER WELL DRILLERS
INDUSTRIAL RECOVERY CODE AND CODE OF FAIR
COMPETITION FOR THE AMERICAN ASSOCIATION OF
WATER WELL DRILLERS
The American Association of Water Well Drillers, a national
trade association representative of water well drilling contractors
throughout the United States for several years last past, pursuant
to the purpose of the water well drilling contractors to cooperate
with the President of the United States in effectuating the policy
declared in Title I of the National Industrial Recovery Act, does
hereby recommend and submit for approval pursuant to Section 3
of said title the following Code of Fair Competition and plan for
its administration for all work insofar as it pertains to water well
ARTICLE I-DECLARATION OF POLICY
In order to induce and maintain the united action of labor and
management under adequate governmental or private sanctions and
supervision, to eliminate unfair competitive practice and to advance
the public interest, to reduce and relieve unemployment, to improve
standards of labor and living and otherwise rehabilitate the water
well drilling industry and effectuate the policies set forth in the
National Industrial Recovery Act, this code of fair competition
governing the furnishing of water well drilling services by the water
well drilling, industry is adopted.
ARTICLE II-DEFINITION OF "WATER WELL DRILLING CONTRACTOR"
When used in this code, the term "Water Well Drilling Contrac-
tor is any person, partnership, company, association, corporation,
or agency which contracts to supervise, coordinate, and/or execute
the work of drilling, bororingring, or construction of test holes
and/or water wells other than for oil or gas in any way whatsoever.
Any person, firm, partnership, agency, company, association, or cor-
poration engaged in the drilling, boring, coring, or construction of
test holes and/or water wells other than for oil or gas shall be subject
to compliance with these articles and code, whether by formal contract
ARTICLE III-TRADE ASSOCIATION
(a) This national trade association of water well drilling contrac-
tors affirms that it imposes no inequitable restrictions on admission to
membership therein, and is truly representative as a national trade
association of the water well drilling industry.
(b) This code will not promote monopolies or eliminate or oppress
small enterprises and will not operate to discriminate against them,
9112--No. 1616-78--33 11\
and will tend to effectuate the policy of said Title I. It is expressly
recognized that the President of the United States may, as a con-
dition of his approval of this code, impose such conditions (including
requirements for the making of reports and the keeping of accounts)
as may be expedient in the furtherance of the public interest for the
protection of consumers, competitors, employees, and others, and
may provide such exceptions to and exceptions from the provisions of
this code as the President of the United States in his discretion
deems necessary to effectuate the policy herein declared.
ARTICLE IV-LABOR RELATIONS
SECTION 1. Labor Conditions.-In accordance with the require-
ments of the National Industrial Recovery Act:
(a) Employees shall have the right to organize and bargain collec-
tively 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.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his
(c) Employees shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
SEC. 2. Aininium Wlages.-(a) A water-well drilling contractor
shall pay wages not less than the minimum rates which shall be
at the rate of thirty-five cents per hour up to two years' experience,
and not less than at the rate of forty cents per hour for all men
employed at this work having more than two years' experience, except
the states of Maryland, Virginia, North Carolina, South Carolina,
West Virginia, Tennessee, Georgia.., Florida, Alabama, and Mis-
sissippi, which shall be at the rate of thirty cents per hour up to
two years' experience, and not less than at the rate of thirty-five
cents per hour for all men employed at this work having more than
two years' experience.
(b) A water-well drilling contractor shall make payment of all
wages as due in lawful currency of the United States, or its equiva-
lent in the form of bankable check. The water-well drilling con-
tractor or his agents shall accept no rebates, directly or indirectly,
on such wages, nor give anytliing of value or extend favors to any
person for the purpose of influencing rates of wages or the working
conditions of his employees.
(c) A water well-drilling contractor shall not resort, to the use of
what is known to the trade as piecework or similar contractual
relationship in his employment of labor, when tending to defeat the
spirit and purpose of Section 7A-3 of Title I of the National Indus-
trial Recovery Act.
(d) No contract or agreement shall be made by a water well-drill-
ing contractor with a subcontractor or other agency, which requires
the services of mechanics or labor on the site of the work, unless the
established minimum rates of wages are paid.
SEC. 3. Maxl'mum HHours.-(a) A water well-drilling contractor
shall not permit nor require any individual directly employed on
any water well-drilling, boring, or well-construction project to work
more than a maximum of forty-eight hours a week and eight hours
a day except in cases of emergency requiring the protection of life or
property, and in no case more than one hundred hours extra in any
six months' period, except those in executive, administrative, and
supervisory positions, providing they are not engaged in the actual
drilling operations and except as a lesser number of hours is re-
quired by Title II of the National Recovery Act relating to public
works and construction projects thereunder.
Nothing herein shall be construed as preventing voluntary agree-
ments establishing a lesser maximum number of hours as provided
in the National Industrial Recovery Act.
ARTICLE V-TRADE PRACTICES
SECTION 1. Sut mittffinf Bids.-(a) A water well drilling con-
tractor, in submitting bids for the construction or improvement of
either public or private works, shall be governed by the following
regulations necessary to insure fair competition, since it is essential
that whenever contracts are to be let by competitive bidding, terms
of the competition shall be such as to insure parity of standing to
(b) All bids shall be in writing signed by the bidder.
(c) A water well drilling contractor shall not be required to ac-
cept the award of a contract after fifteen (15) days after the date
of opening bids.
(d) A water well drilling contractor shall not be held responsible
or penalized for deficiencies in or omissions from the plans and/or
specifications prepared by others and upon which the contract is
SEC. 2. Unfair Practices.-(a) A water well drilling contractor
.shall not engage in the unfair practice known to the industry as
"bid peddling" or any similar unfair practice.
(b) A water well drilling contractor shall refuse to deal with
.any person or persons who have not complied with the code of fair
competition herein defined.
(c) A water well drilling contractor shall not take advantage in
his bid of any special privileges, favors, or understandings had with
him by persons in control of the award. This, however, shall not
prevent. any such competitor, even though not. the lowest bidder,
from taking such contract, providing the award is made at his
original competitive bid price, nor shall it prevent any water well
drilling contractor from accepting the award of such contract at any
price where no competitive bids are taken.
(d) A water well drilling contractor shall not revise his hid
after bids have been opened in order to improve his position with
the owner, except he be the low bidder. Bonn fide errors dis-
covered after the opening of bids may be grounds for withdrawal
(e) A water well drilling contractor shall not encourage or in-
duce the owner or his agent to reject bids and readvertise in order
that he may revise his original offer.
(f) A water well drilling contractor shall nor bid upon a project
which bids have previously been invited, received, and opened at
any time within ninety days from the date of the previous opening
of bids next thereafter, except there be substantial changes of the
plans and specifications.
(g) A water well drilling contractor shall not knowingly submit
a bid nor accept a contract which does not include all direct and in-
direct costs, and he shall maintain and keep on file his original
estimates supporting his bid or contract, for one year after comple-
(h) It shall be an unfair trade practice to sell or offer to sell any
or all services connected with the drilling, boring, coring, or con-
struction of test holes and/or water wells other than for oil or gas,
which is less than the individual's, partnership's, firm's, or corpora-
tion's costs, as determined by the National Industrial Control Com-
mittee's standard cost accounting system.
(i) A water well drilling contractor shall not give or accept
rebates, refunds, allowances, unearned discounts, or special services
to or from subcontractors, material vendors, or others which are not
extended under like terms and conditions to other purchasers of
material or services of equal credit rating.
(j) A water well drilling contractor shall not permit subcon-
tractors or material vendors on a specific contract to finance or
guarantee his accounts.
(k) A water well drilling contractor shall not convey to any sub-
contractor or material vendor any substantial information prior
to the award of the particular subcontract relating to the bid of any
other subcontractor or material vendor who has made a bid to him
or to any other water well drilling contractor, nor shall he mislead
or deceive any subcontractor or material vendor as to the amounts
and conditions of other bids for the purpose of obtaining a lower
ARTICLE VI-WATER WELL DRILLING CONTRACTORS
SECTION 1. Qualificatio.n.-A water well drilling contractor shall
be properly qualified by experience, equipment, and tools to bid upon
and properly execute the contract which he undertakes.
SEC. 2. Accounting and Reports.-A water well drilling contractor
shall maintain a system of making reports, and shall keep adequate
accounts of all moneys received and disbursed as provided for
and/or approved by the National Industrial Control Committee
for Water Well Drilling Contractors.
SEC. 3. Contractual Agreements.-The following bases of con-
tractual agreements are recognized as fair trade practices: cost of
the work plus a fee, unit price, lump sum to be made up from unit
prices openly stated on bid form and in contract and to be arrived
at on the basis of unit prices as follows: (a) price for drilling; (b)
price for pipe; (c) price for screen; (d) price for pump; (e) price
for motor or other power; (f) developing and testing per hour;
(g) incidentals to be definitely priced separately; (h) guarantee for
workmanship and materials for one year or less.
SEc. 4. Payments.-A water well drilling contractor shall demand
and insist upon receiving the contract payments as they become
due in lawful money of the United States or its equivalent, as pro-
vided by the contract, and he shall not waive his right to receive
any part of such contract payments, nor shall he return to the owner
or his agent any money or render him any service or give him any-
thing of value not required by the contract.
SEC. 5. Surety.- A prequalified water well drilling contractor who
has met the necessary qualifications entitling him to the work, but
who is unable, due to conditions beyond his control, to obtain the
proper surety required by the contract may agree with the owner
and the Regional Control Committee for Water Well Drilling Con-
tractors upon a suretyship of some other nature.
SEC. 6. Disputes.-When arbitration as a method of settling dis-
puted matters is agreed upon, the rules of procedure as established
by the American Arbitration Association shall govern, except as
otherwise required by law. Payment shall not be withheld from the
parties affected exceeding that sufficient to cover the amounts in
SEC. 7. General Requirements.--A water well drilling contractor,
in his relations with subcontractors, material vendors, and other
shall require such parties to adhere to the principles enunciated by
this code of fair competition.
ARTICLE VII-CORRELATING INTERESTS
To effectuate the purposes and the policy of the National Indus-
trial Recovery Act and this code of fair competition for water well
drilling contractors it is essential and requisite that, in a water well
drilling contract, all interested parties and participants, or their
agents, be obligated to adhere and conform to the basic principles
regulating it. Therefore, all such persons shall have correlative
responsibility to adhere and conform to the basic principles of the
National Industrial Recovery Act and this code of fair competition
for water well drilling contractors.
ARTICLE VIII-RULES AND REGULATIONS
SECTION 1. The President may from time to time cancel or modify
any order, approval, license, rule, or regulation issued under this title
SEC. 2. Administrative Committee.-(a) To effectuate the purpose
of the Code and provide for administrative control within the indus-
try, there shall be established a "National Industrial Control Com-
mittee for Water Well Drilling Contractors", consisting of one
member from each State, Territory, or Possession that operates
under the N.R.A. In addition to these members there may be three
members selected by the N.R.A. who shall be advisory only and
shall not vote. There shall be three officers, the President, Secretary
of Committees, and the Secretary of the American Association of
Water Well Drillers-the President of the American Association of
Water Well Drillers as Chairman, the Secretary of Committees
of the American Association of Water Well Drillers as Vice Chair-
man, the Secretary of the American Association of Water Well
Drillers as Corresponding Secretary.
(b) This National Industrial Control Committee shall be elected
within three months after the approval and signing of this code by
the President of the United States. The representatives from each
State, Territory, or Possession shall each be selected by a truly repre-
sentative group of water well drilling contractors of their State,
UNIVERSITY OF FLORIDA
3 1262 08850 2843
Territory, or Possession and it shall be their individual duty to
select their representative in time to comply with this act. This
representative must be a drilling contractor who has been in the
well contracting business for five years last past or longer.
(c) To effectuate immediately the purpose of the Code and provide
for immediate administrative control within the industry, there is
established a "Temporary National Industrial Control Committee
for Water Well Drilling Contractors ", as elected by water well
drilling contractors representing the American Association of Water
Well Drillers, the different state associations, and nonmember groups.
The temporary National Industrial Control Committee shall func-
tion as the Administrative Committee until the permanent National
Industrial Control Committee is elected as herein provided.
SEC. 3. Regional Committees.-The representative from the State,
Territory, or Possession elected to the National Industrial Control
Committee shall be Chairman of his State or Regional committee and
it shall be his duty to see that there is a committee of four addi-
tional members elected from his district, making a committee of
five in all. Two of these members are to be what is known as small
drilling contractors and doing the smaller work, and two of the
members are to be selected from what is known as large drilling
contractors doing the heavier work, or more extensive contracting.
SEC. 4. (a) National Control Conmmittee.-The National Indus-
trial Control Committee for Water Well Drilling Contractors shall
have full authority to make all needful rules and regulations for the
administration and enforcement of the provisions of this Code, shall
recommend to the President any supplements or revisions to this
Code that may be necessary, and upon its own initiative, shall make
such inquiry and investigation and take such action as may be neces-
sary under the operation of this Code. This committee shall have
full authority to establish subordinate State, local, and regional
committees and prescribe such duties, rules, and regulations as are
deemed necessary to carry out the purposes of this Code and the
National Industrial Recovery Act.
(b) Amendments or revisions may be proposed to the President
by water well drilling contractors, acting through their national
trade association, designated as the American Association of Water
SEC. 5. Administration. Expense.-All water well drilling con-
tractors, as defined, who wish to receive the benefits of this Code,
shall bear their proportionate share of the expense of the prepara-
tion and administration of this code of air competition under such
rules and regulations as may be approved by the President of the
SEC. 6. Effective Date.-(a) This Code shall be effective when
approved by the President of the United States.
(b) This Code shall be applicable only to all construction work
undertaken pursuant to contracts entered into or otherwise com-
menced after such approval date.
AMERICAN ASSOCIATION OF WATER WELL DRILLERS,
By T. W. THORP, Sec'y of Committees.
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