Registry No. 1610-62 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FO.R THE 

BUILDING CONSTRUCTION AND 

BUILDING MATERIAL INDUSTRIES 

AS SUBMITTED ON JULY 5, 1933 

ua.... -'l 

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U.l. OEJ!t~TO~Y 

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 Recoveru Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. 

( 

CODE FOR BUILDING CONSTRUCTION AND BUILDING 

MATERIAL INDUSTRIES 

Approval is asked of the President of the United States by Building 

Industries of America, a Service Organization. Charles J. Colun1bus, 

Managing Director, National Headquarters, Raleigh Hotel, Washington, D.C. 

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 recovery, to foster fair competition, and to provide for the construction 

of certain useful public works, and for other purposes", by the legalization 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 Material 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 emergency and, it is believed, will be secured in the same manner in the 

future. 

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 contract or agreement of any kind. 

(b) The definition "Building Material Industry" shall include any 

ndividual or set of individuals or corporations engaged in the manufacture or distribution of commodities used in construction work. 

SEc. 3. Objects of Building Industries of America.-(a) Building Industries 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 enfor~ement 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; Heating 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; 

8929-33 (1) 
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Terrazzo; Mail Chute and Box; Alterations to Existing Work; ~1odels 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; Sca.ffolding; Acoustical 

Treatment and Sound Proofing. 

SEc. 5. Services.-Building Industries of America serves its members 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 

other services. 

SEc. 6. Active Members.-Any inmvidual, firm, or corporation engaged in any form of building construction, in services or materials 

shall be eligible to Active lVlembership 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, craftsman, or citizen other than those actively engaged in the Building 

Industry may become Associate Members on application and acceptance 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 

a.nd 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. Membership.-All individuals, firms, or corporations desirous 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 

as member. 

SEc. 10. Resignation.-Any Active or Associate Member or Client 

may resign on payment of accrued obligations. 

SEc. 11. Identification of member$hip.-Al1 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 preparation 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 

material supply. 
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(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 a1nended after filing but n1ay 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 a.nd theN a tiona.! Recovery Law. 

SEc. 14. Jl.1inimum wagesUnskilled Labor_ ____________________________________ $0.50 per hour 

Skilled Labor________________________________ _______ . 7 5 per hour 

Skilled Mechanics_____ ______ _____________ ___________ 1.00 per hour 

Highly Skilled Mechanics________________________ _____ 1.50 per hour 

SEc. 15. ll£aximum hours.-Five-day week of sh hours per day. 

SEc. 16. Manual 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 eonditions of the Code. 

SEc. 17. Maximum 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 controversy 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 t,he 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 9-s 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 workin?: 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 

minimum payroll. 

SEc. 20. Costs of doing work.-(a) All individuals, firms, or corporations 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, subdivided as to projects and the source of purchase. 

(b) Administration costs and general overhead shall be kept separately. Six percent interest shall be added to tllis and the total 

cost of general administration prorated to each project. 

(c) All wages, sala~ies, engineering costs, and expenses of every 

character and kind for each individual project shall be kept in a separate 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 

amount involved. 
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SEc. 21. Material dealers' costs.-All material dealers shall keep an 

accurate record of all purchases, expenses and sales, including out of 

pocket and a umed obligation of every character, including admini trations cost and general overhead, wages, salaries, rents, taxes, and 

do all things provided in Section 20 of the Code, including an allowance for amortization, ob olescence or damaged goods, and all other 

lo e . 

There shall be a minin1um gross profit of 25 percent. 

SEc. 22. Lnsalable or slow-moving mateTial.-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 hall not affect contracts or verbal agreements 

already made at higher prices. \ iolations thereof shall be punishable in accordance with the procedure provided in Federal and State 

laws. 

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 anticipated 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 Employers to Collective Bargaining, one with the other, is recognized. 

Such bargaining and wage determination 1nust 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 
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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 

Quantity discounts 

Quality discounts 

Terms of sale 

Premiums 

Allowances 

Carrying charges 

Or to indulge inSubstitution 

Commercial bribery 

Misrepresentation 

False invoicing 

Freight absorption 

Piracy of design 

Dumping 

Misbranding 

or other acts of unfair practice. 

Dealer aids 

Free deals 

Seasonal reductions 

Ad allowances 

Samples 

Free goods 

False or misleading advertising 

Interference with contracts 

Irregular billing dates 

Free service 

Refunds 

Unearned discounts 

Confidential prices 

Special service. 

(b) The naming, marking, or billing of materials, fixtures, apparatus, or installations of products and free labor, for the purpose of, 

or with the effect of misleading or deceiving purchasers, is considered illegal. 

(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 

illegal. 

(d) The bidding on jobs without sufficient time for preparation or 

proper estimate or without an individual copy of the plans and specifications being available to bidder as a basis for the bid is illegal. 

(e) The failure of architects, engineers, and owners to award contracts 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 contractor 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 

is illegal. 
UNIVERSITY OF FLORIDA 

6 1111111111111111111111111111111111111111111111111111111111111111 

3 1262 08850 3155 

REPORT OF VIOL.t1.uv1'jo 

All violations shall be reported to Building Industries of America, 

at Washington, D.C. 

SEc. 31. SafeguaTds for Employees .-All Employers of Labor of 

any character or kind in the Building Construction Industry or the 

Building Material Industry shall exercise reasonable safeguards to 

protect the health, safety, and well-being of" employees. They are 

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. Appr~ntices, BeginneTs, and LeaTners.-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 over 

may be employed at a minimum rate of pay of two dollars per day, a 

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. RepoTts to Building IndustTy 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 America in 

Washington, D.C. Such reports must be in writing. This organization 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 Oode.-(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 unenforceable the remaining provisions shall remain in full force and effect. 

BuiLDING INDUSTRIES OF AMERICA, 

(Signed) CHARLES J. CoLUMBus, Managing DirectoT. 

Executive Office: The Raleigh Hotel, Washington, D.C. 

DATED JuLY 5, 1933. 

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