Approved Code No. 244 Registry No. 1616-2-31 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION INDUSTRY 

.. 

AS APPROVED ON JANUARY 31, 1934 

BY 

PRESIDENT ROOSEVELT 

UN\V. Ofl· FL L~. 

0- -- ,.,, ' ___ ... 

u.~ . oepOMT~ 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

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WASHINGTON: 1934 

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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 

ConE OF F .AIR CoMPETITION FOR THE CoNSTRUCTION INDUSTRY 

An application having been duly made, pursuant to and in full 

compliance with the provisions of Title l 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 States, pursuant to the authority vested in me qy 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 WHITE HousE, 

January 31, 1931,.. 

29048°-296-107-34 (649) 
The PRE. IDENT, 

The White House. 

Srn: 

A propo ed Code of Fair Competition for the Con truction Indu - try was ubmitt.ed to the Administrator on August 7, 1933, by The 

Construction League of the United States. The hearing was onducted in\\ a hington on September 6, 1933. The Code was revi d 

during the recess of this hearing and a reconvened hearing was 

h ld N ovembcr 20, 1933. 

At the con lusion of the reconvened hearing, I appointed a ommittee to report on this Code. This comn1ittee was compo ed of 

representative from this Administration and from the inter ted employ~r and employee groups and associations. 

The deliberations of this committee were very helpful, but certain controver. ial points were not sati factorily adju ted. The controversial points in the Code have now been satisfactorily adju ted 

and the Code, as now submitted to you, has the approval of both 

employer and employee groups. - In addition to the establishment of a Con truction Code Authority to administer the Code generally, the Code provides for the 

tablishment of Con truction Planning and Adju tment Boards. 

The National Construction Planning and Adjustment Board will 

consist of ten persons to be selected by the Construction Code Authority and ten persons will be selected by the Labor Advisory Board 

from nominations of the Construction employee organizations and 

a disintere ted chairman will be selected by the President upon the 

recommendation of the Administrator. This Board will have the auth rity to establi h subsidiary regional boards to be known as Reei.onal Construction Planning and 

Adju tment Boards providing equal representation of mploy r and 

employee groups. Such actions as they may see fit to take are ubject to final determination by the National Con truction Planning 

and Adjustment Board. The establi hment of these Boards is of prime importance as they 

provide a method by which Industry and Labor may meet on com- mon gTotmd .for the purpose of planning for the entir indu try and 

for the aclju tment of such disput as may be submitt d t them. 

They will make I o ibl the cooperation of mploy r and employees 

in all matt r p rtainino- to their relation. , and to all matter pertinent to the Inclu try. 

The provisions of the Code providing for th e oard do not, 

how ver, make it mandatory upon th part of anyone to submit 

t.h ir problem to the Boards nor mandatory upon the part f the 

Boards to accept for adjn. tment uch pr bl m . Provisions of code as to wages and hours.-T ffectuate the 

poli ·y of Title I of the Act thi ode pr i e for colle ti bargaining bet een truly representative group or a ociation of m-

(650) 
651 

ployers and employees for a specifically defined region or locality. 

The entire United States may be defined as a region. Mutual agreements so reached as to hours of labor, rates of pay, and other conditions 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 f acie 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, working 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 because 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, clerical. or office employees are flexible during a four-week period. 

The following classes of employees are exempted from the maximum 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 accounting, office, and clerical employees, is based on population differentials. For laborers, the minimum rate is 40¢ 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 auLhorize reductions in existing rates of pay. 

No minor under the age of 16 years of age shall be employed. 

ECONOMIO EFFECT OF THE CODE 

Very great potential economic benefits for the Construction Industry 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 Indu try, for the first time, 

th p w r f o rdinated a tion, which may be u ed to check the 

viol nt flu tuations in volume of con truction, ran oing from 100% 

ab v 50% b l w n rmal requiremen , and w rk oward stabilization ba d upon d mand; to unify th In ustry locally, regionally, 

and nationally for self-go ernment; and to provide unity of action 

i m tinO' national mergecie . Th provi i ns of the Code d igned t prevent practices known 

as ' bid sh PI ino· ' and bid ped line ' will b productive of fair 

competition in contra ting for construction work. Th e provisions, 

in conjunction with the provisions as to ar a agreem nts on erning 

lab r conditions, should greatly facilitate str1ct adherence by all 

members of the Indu try to such Code provisions as those intended 

t prevent " bid shopping " and " bid peddling " and thus t n to 

create equally the same conditions for labor and members of the 

Indu try. 

Return to normal volume in the Industry can re ult 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 relationship of current construction cost to anticipated net inoome or future 

increment in value. In these circumstances, further limitation on 

hours will have little effect on increasing employment as construction 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 proceedings in this matter : 

I find that: 

(a) Said Code is well designed to promote the policies and purpo s of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of inter tate and foreign 

commerce which tend to diminish the amount th reo£ and will/rovide for the general welfare by promoting the orO'anization o indu try for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management under adequate governmental sanctions and upervision, 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 

tempor arily required), by increasing the con umption 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 re pects with the pertinent provisions of sa1d Title of said Act including without limit ation Sub ection (a) of Section 3 Subsection (a) of Section 7, and 

ub ection (b) of Section 10 thereof· and that the applicant association are indu trial a ociations truly repre entative of the aforesaid I ndu try· and that said associations impo e no inequitable re- strictions on admission to membership therein. 

(c) The Code i not designed to and will not permit monopolies 

or monopolistic practices. 

(d) The Code is not de igned to .and will not eliminate or oppress 

small enterpri. e and will not operate to di criminate against them. (e) Those engaged in other steps of the economic proces have not 

been deprived of the right to be heard prior to approval of said 

Code. F or these reason , therefore, I recommend approval of this Code. 

Respectfully, 

J anuary 31, 1934. 

H uoH S. JoH~SoN, 

Administrat<Yr. 
CODE OF FAIR COMPETITION 

FOR THE 

CONSTRUCTION INDUSTRY 

To effectuate the policies of Title I of the National I ndu trial 

R covery Act, the following provisions are e tablished as a Code 

of Fair Competition for the Construction I ndu try, and hall be the 

tandard of fair competition for this industry and shall be binding 

upon ery member thereof. 

CHAPTER I- GENERAL PROVISIONS 

ARTI LE I-APPLICATION 

The provi ions of this Code shall apply to the entire indu try as 

hereinafter defined, excluding operatwns therein undertaken in 

ac ordance with bona fide bids made not more than sixty (60) da, s 

prior to the effective date, or contracts entered into prior to the 

t.>ffective date; except that the provisions of each chapter incor- porated in this Code shall apply only to the clivi ion or ubdivi ion 

of the Industry defined in such chapter. I n the ca e of conflict be- tween such chapter provisions and the general pro i ions of this 

ode, the chapter provisions shall govern. I £ any other code of 

fair competition or a provision thereof, heretofore or hereafter ap- proved by the P resident, shall conflict with this Code or with any 

provisions thereof, the Administrator may hold such hearing as he 

may deem nece ary and thereafter may, if in his judgm nt ju tice 

r quires grant such stay, exception, or exemption or make uch other 

determination as he may deem advisable to effectuate the policies 

of the Act. 

AnTI LE II-DEFINITIONS 

SE TION 1. The term "construction indu try" or " the indu try" 

as used herein hall include the de · igning and the con tructing of 

(and the in tailing and the applyincr, in lt1ding the a mblin at 

the ite, of manufa tured parts and products in orpora ed in and 

to) : 

(a) building stru tures, including modifi ation ther of and fixed 

con. tru tion a e ory ther to, int nded for u e as h lt r · and 

other 

(lJ) fixed tructure and other fi xed improvem nt an 

tion ther of, int nd d f r u e in indu try comm rc , anitati n, 

tr an p rtati n, c mn uni ati n flood control pow r 1 v lopm nt 

r clamation, and oth r imilar proj ct or rvi · and , u h r lat d 

clivi ion or. ub livi i n th reo~ may b d fi n cl in chapters 

her of and 1nclud d her under w1th the a proval of the Pre ident. 

(654) 
655 

SEc. 2. The term " di...-ision of the industry" or " eli ...-ision" as used 

herein shall mean a branch of the industry which has been or may 

hereafter be defined in a particular chapter of thi Code. The 

term "subdivision of the industry " or ' subdivision' shall mean 

a defined section of a division. 

SEc. 3. The term " member of the industry ", a used herein, 

includes any indi' idual or form of organization or enterpris;e engaged in any phase, or undertaking to perform any of the functions 

of the industry as defined in Section 1 hereof, either a an emplo.) er 

or on his own behalf, including also but without limitation, architects, engineers, contractors, and subcontractors. 

SEc. 4. The tern1 "member of the division" or "member of the 

subdi' ision" includes any member of the indu try engaged in one of 

the divisions or subdivisions of the industry now or hereafter 

established. 

SEc. 5. The term "employee ', as u ed herein: hall 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 "Admini trator ", as 

used herein, shall mean, respectively, the President of the United 

States, the National Industrial Recovery Act, and the Admini trator 

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 Pre ident, provided that in respect of a particular division an earlier 

effective date may be specified in the Chapter applicable to uch 

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 as ent 

thereto: 

1. Con truction 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 As ociat.ion. 

9. Contracting Plasterers International Association. 

10. Tile and JYiantel Contractors As ociation 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 Ro.ad Builders As ociation. 

16. National As ociation of Metal Furring and Lathing Contractors. 

17. Asbestos Contractors National A sociation. 

18. National Association of Building Trades Employers. 

29048°----296- 107----34----2 
1 . N a i nal 

.... 0 ...... \.m ri an 

hall in lik 

o<.l . 

656 

EC. 10. Th i rm thi · o l ' a u u her in hall mean anu inlud unl he cont xt clearly indicat · oth rwi · all ·hapt r. 

fr m tim t ime include l h r in t geth r with any m lificati ns 

or amen lment ther t . 

EC. 11. P pulation for purpo of thi hall be d t rmin l 

y r ef r enc:e to the 1 30 F deral en ·u . 

ARTICLE III-HouR \V AGE A To o~DITION oF El\IPL Y:~IE .. YT 

E TIOX 1. In each clivi ion or ubclivi ion of the inclu. try. a. d -

fin d in th ha pter in orp rate l in thi ode relating thereto truly 

repre entati~ a ociation or groups of mployer and employee 

r e pecti-vely concerned after proper noti e and h arina anti a. c 

r ult of bona fide ll ctive bargaining 1na e tabli h by 1nutual 

agreen1ent (when approved by the Presi lent a provid din ecti n 

'7 (b) of the A t) for a pecifically defined region or locality th 

standard of hotU' of labor, rate of pay and o.c uch other ondition ~ 

of employment relating to occupations or t pe f operation in 

uch clivi ion or ubdivi ion, a. 1nay be nec.e ary to effectuate h 

policy of Title I of the Act. For the purpo e of thi •ection. the 

entire United States may be defined a a region. The term.~ of u ·h 

an agreement between the employers and employee of a diYi -- i n 

or "ubdivi ion of the industry hall not be binding up n th employers and employees of an other clivi ion or ub livi ion of th 

rndu try. 

After the Pre iclent ha approved any uch agreement arriv d a 

within any uch di i ion or ubclivi ion, and after proper noti e f 

such approval, it shall be deemed prim.a fa ie unfair ompetition f r 

any employer in uch division or ubclivi ion to fail to omply with 

the standard of 1naximum hour of labor minimum rates of ay r 

other condition of employment o approved and pr . cribecl b~: th 

Pre ident in re pect of the performance within the lefined region r 

locality of the type of operations concerned· and he failur of 

nch an employer to de i t from uch unfair competition after b ino· 

gi en clue notice and opportunity to b h ar 1 hall con titnte a 

iolation of the requirements of thi ode. 

The dmini trator hall e tabli h one or more Board for a h 

clivi. ion or ubdivi ·i n f the indu tr. concerned to inY , tigat an~r 

c mpla]nt of unfair 111p tition a defined in thi tion. at'h 

uch Board hall con i t of t r 1 re entative ea h of employ r 

and emplo e of the di1i ion r "ubdivi ion affe ted lected y 

th A lmini trator from n mination rna l b. n h mpl yer. nncl 

mploy e re pectively in . uch manner a th dmini trator may 

a pro or pre crib an 1 an impartial ·hairman nam d by thvc:> 

dmini r tor from n n inati n mad by th emr l ·ver and mploye r epr " ntati' e le t l t the a rd. Each ~B ard hall 

iv noti an 1 opportunity to hear 1 to a ·h com ph in ant and r -

pondent an 1 ther after n tif . ail parti . of it finding ~ nd rep rt 

them to th Aclmini tt·ator, a a ba ·i f r appropriat a tion to en-
657 

force the require1nents of this Code. The provisions of thi Section 

shall not be construed to limit the po\\er of the Pre ident in the 

ab ence of such a mutual agreement, to exercise any authority conferred upon him under Section 7 (c) of the Act. 

EC. 2. \Vhere no applicable mutual agreement a provided in 

Section 1 of thi Article, hall have been appro,ed emplo 'er hall 

compl "ith the following prmTi ion a to minin1um rate of pay 

and maximum hour of labor. 

A. No employee excluding accounting office . and lerical employee hall be paid at s than the rate of fort ' ( 40) cent per 

hour provided, however that the provi ... ion of thi paragraph A 

hall not be con trued a e tabli hing a minimum rate of pa} for 

other than common or un killed labor; and pro-vided further that 

uch pro\i ion hall not be con trued to authorize reduction in 

exi ting rate of pay. 

No accounting office or clerical employee ·hall be paid at le than 

the rate of $15.00 per \\eek in any city of O\er 500 000 population 

or in the immediate trade area of uch city· 14.50 per \\eek in any 

city of bet\\een 250 000 and 500 000 population or in the immediate 

trade area of such city; $1:1:.00 per \\eek in an} cit of bet\\een 

2 500 and 250 000 population or in the immediate trade area of nch 

city· and 12.00 per \\eek in to\\n of le than 2,.~00 population. 

The foregoing provi ion of thi paracrraph A e tabli h a minimum 

rate of pay "hich hall apply irre pecti-ve of \\hether an employee i 

actually compen ated on a time rate piecework or other ba i . 

B. No employee hall be permitted to work in exce of forty ( 40) 

hour per week or in exce of eight (8) hour in any t\\enty-fonr 

(24) hour period "ith the follo\\ing exception and limitation : 

1. On application of the intere ted partie and after appro\al of 

the National Con truction Planning and Adju tment Boar i of Regional Boards e tabli ... hed by it an employee may be 1 ermitted to 

\\ork forty-eight ( 4 ) hour in any one \\eek "hen the following 

condition obtain: 

(a) On project located at point o remote and inacce · ible that 

camps or floating plants are nece ary for the hon ing or boarding 

of a majority of the labor employed. (b) On uch remote project when working time ha been o~ t 

becau e of inclement weather or una-voidable delay in any one \\eek, 

it ma be made up in the following four \\e€k . (c) On project in localities \\here a ufficient amount of qualified 

labor i not available in the immediate \icinity of the \\Ork. 

2. The foregoing maximum hour of \\Ork shall not be con trued 

a a minimum either for a day or for a \\eek 1 and if at any time 

in any locality trul repre entative group of employee in a division or ubdivi ion of the indu try through their cho en repre entahve express by \\ritten reque t to th ir employer or employer 

a de ire to hare a\ailable \\ork in uch clivi ion or ubdivi ion the 

number of hour of \\ork may be reduced by mutual agreement 

between uch employee and their employer or employer . In the 

e\ent of inabilit to arrive at an agreement which will not invol\e 

undue hard hip on either employees or employer , then uch difference with the con ent of all parties in intere t, may be ubmitted 

to the National Con truction Planning and Adju tment Board for 
638 

~ d ci.'ion. h .... ation, 1 Board n a· re 1nir anls 

to , ·ur £act · aiH.1 full informatio11 r lnti,· t . u ·h di pu at d 

ubmit th sam to th ... ational I oar<l for it· information. 

I i. no , ho\\eYer th int nt f thi pr n-i. i n that , n · . u ·h 

r Lluction will be r ·omm ndecl b th Nati mal oar 1 t e pnt 

into Ife ·t if it U} p ar pr babl that untlu hard:hip might be 

era ion .d th r by to ith r mpl y r · r mrl y 

. The full winO' ·lu · e · f n ]loy c · ar ex mr t: 

(a) Empl yee ngaB ll in pr .. i nal, .~ u iY r U] en 1. or ' 

\York. 

(b) Emplo · e in e tabli ·hm nt mplo ·in; 1 ot mor than t '"O 

(2) per n in to\Yn of le · than 2 300 p pulation whi h town 

ar not part of a larb r trade ar a. 

(c) Empl ·ee en(raged in em r ·ency " . rk involvin(j re kl "n or 1 r t ction of life or property. 

(d) Watchmen. 

(e) Oth r mployee who may be exempt l in chapt r · of thi 

Code p ifically applicable only to the divi ·ion or ubdiYi iun of 

the indu try therein defined. 

4. Accounting, clerical or office employee may be pen 1itt d to 

work not in exce of forty ( 40) hour per we k av rag c1 oYer a 

period of four con ecutive 'l'eeks. 

C. No mplo er hall knowingly permit an employee t \Tork 

for a total number of hours in exce of the hour · h rein pr -

cribed, whether emrloyed by one or n ore mployer . 

SEc. 3. "Vhere pr Yi ion concerning hour of labor or rate of 

pay haYe been e tabli heel for pecifi projech:> by competent goYenm1ental authority or agencie (whether Fed ral, State, r political subdi' i ion thereof) acting in accordance with law any mployer required to comply an l complying 'l'ith the proYi i n o 

e tabli heel hall be relieYed of compliance with any conflicting 

proYi ion of thi Article or of any action taken in ac · nlan 

therewith. 

Any emplo; er required to mply and c mplving ' ith the provi ion of a Yalid labor agyeement in force on the effectiYe date shall 

b reb eYed to the e. tent of hi ~ 1 gal oblio·a tion · thereun 1 r of ompliancc clurinrr the period of uch agreement with any ontlicting 

proT'i ion of thi Article, or of any action · taken in accordance 

therewith. 

'E . 4. Minimum, og '.-No empl yer hall mplo. an3 per on 

under th age of ixteen (16) y ar , or un ler the ao· f eiaht '11 

( 1 ) y ar. in an upation hazardou in nature or dmw: ron to 

h alth. 

, E . 5. on tJ·uct ion Planning and Adju.·tment Bo{(!·rls.-Th r 

. ·hall b . tabli h c1 within thirty (30) dny · fr m th ff 

of thi. ocl<>, a ati nal C01 tru ·tion Planning an 1 

Board, an l . ail B ard hall on it of tw nt '-one (21) 

of ''hom . ·hall b cl t l b th In In trial ... I vi r) .. T ational R oYery I mini trati n from nominati 11. · f tb on-

.· rn ti n o l A nth rity an l t n . hall b . · l t c1 by th Lab r 

fhi ·orv Boanl f tl Nati nal R coY r 1min1.tration fr m 

nomination of th n tru tion mploye rganizati u. · th · ] -

tion in a ·h ca e to b ubj t to h appr Yal of th Admini tra-
659 

tor, and one person to act as disinterested chairman to be selected 

by the President upon the recommendation of the Administrator. 

The National Con truction Planning and Adjustment Board shall 

haYe for it fundamental purpo e 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 indu try and the furtherance of other matters of their mutual intere t. 

It shall have the authority upon its own motion to select technical 

advisers and seek the cooperation of all factors involved in the 

'tabilization and pr01notion of the well-being of both employers and 

employees in the industry and shall have the authority to make . uch 

rules and regulations for its own conduct as it may deem necessary. 

It shall, in its own discretion following the submission by con. ent 

of all partie. in interet of any difference within or between any divisions or subdivi ·ions of the industry, give consideration and make 

determinations on all such difference · 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 abeyance until approval or eli approval has been given by the Administrator. 

The National Construction Planning and Adjustment Board shall 

have the authority, and upon its own motion shall establish in properly 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 further provided that there hall be no disinterested or impartial 

chairmen of said Regional Boards, it bein~ provided that such 

Boards shall select from their members a chauman and a secretarv. 

The National Construction Planning and Adjustment Board ha~ll 

upon its own motion submit to the Regional Boards such problems 

for tudy a may in the opinion of the National Board be neces ary 

and such reports of the Regional Board shall be ubmitted to the 

final examination of the National Board. 

To the. e Regional Con truction Planning and Adjustment Boards 

may be submitted matter from their respective areas in disputes 

having the ame relationship as matters to be qubmitted to the 

National Board, and every effort on their part hall be made to 

reconcile nch exi ting differences, with the requirement that their 

action shall in all in tances be submitted to the National Board for 

final action. 

Nothing in thi .... ection 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 ubmitting to the Board provided for in Article III, Section 

1, or other Board similarly composed and elected for con ideration 

and determination differences that may arise relating to wage. , 

hours of employment and working condition , ubject to the ap- proval of the Admini h·ator. The findings of fact and determina-
660 

hall be ubmi tte to th N a ti nul oard f r it 

To furth r ffe tua e th policies of the A t and to a lmini ter 

thi · Cod within the Indu try and it divi ion and subdiYi ion 

ther ·hall b e tablish a on tru tion ode Authority and Divi- .. ional C le ... uthoritie , and other admini trati ve ao-enci a her -

inaft r provided: 

.A. CON TRUCTION CODE .AUTHORITY 

r: TION 1. The Con truction Code Authority hall con ist of one 

member elected from and appointed by each of the pon ·or of 

thi Code, enumerated in Article II, Section 9 hereof a pon oring 

thi Code a originally ·ubmitted to the President for hi · approval; 

except that the A ociated General Contractors of America ma appoint thereto not more than four ( 4) members, one of such members 

to be selected respecti' ely from each of the following component 

membership group of said organization: Buildino- Con tru tion, 

Hio·hway Con truction, Railroad Construction, Public \\ orks and 

other type of con truction not heretofore specifically enum rated; 

together with not more than three nonvoting member to be appointed by the Ad1ninistrator to act as hi representatives. To the 

Construction Code Authority as so con tituted and e tabli heel there 

may be d ignatecl not more than one additional m mb r in re pect 

of each additional chapter hereafter incorporated herein pr Yided 

that no uch additional 1nember shall be sel ted by an a · ·ociation 

enum rated in Article II Section 9 hereof. The method for the 

el ction of ea h uch additional member shall be de ·cribed in the 

corre pending ad litional chapter. The t rm of uch appointments ·hall not exc ed two years, except that, in the v nt of code continuance beyond the limit now e tabli h l by law, t rm may be 

reaclju tel to in ·ur oYerlapr ing tenures f offic pur uant to a 

plan or meth d ar 1 roved by the Admini trator. V ting m mber 

nre ·ubject to r placement by th ele ting agen r with th appr val 

of the Admini trator. 

SEc. 2. The Con truction Code Authority a tino- a a unit or 

through any d jgnatecl ommitt e or lepartmen cr ate l by it fr m 

its member hip hall have, in addition to an other p w r or lutie 

l er in onferre l ur on it the foll wino· pow r an l lutie : 

(a) It may e tabli h rul s and r gulati n · f r the onduct f its 

affair ·; and n1ay appoint su h committe a ·enci and r pr entative , and deleo·ate t th 111 uch of it pow r. and cluti a it may 

deem nece · ary for the 1 rop r eli char of its fun tion hereun r. 

(b) It shall be mpo red to cooperate with th dmini trator in 

making inve ti ation an 1 urvey con ·ernino- th func ioning of this 
661 

Code, the observance of its provision and other pertinent matters 

whether at the request of the Administrator or otherwise, and report its findings and recommendations to the Administrator. 

(c) It shall collect from members of the industry and compile and 

furnish to the Administrator any report and other information 

required under the Act. Except as may be required for the effective 

enforcement of the provi ·ions 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 furnished. 

(d) In order to collect the information for the Administrator 

herein called for, it may require, either directly or through any Divisional Code Authority, the registration, in such manner as it may 

deem appropriate, of all construction work or services of or in excess of $2,000 in value, and in order to defray the expen es of such 

registration and of the administration of this Code mav 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 President 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 division 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 meeting 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 mem- bers of the industry. 

B. DIVISIONAL CODE A UTHORITIE 

SECTION 1. There shall be established for each eli' ision of the 

industry a Divisional Code Authority which shall, within the limitations provided herein, administer within such clivi ion, thi Cocle 

and the provisions of any chapter hereof applicable specifically to 

such division. The procedure for establi ·hing each such Divisional 

C.o~e. Autho:rit:y shall be defined in t~e chapter pertaining to that d1v1s~o:r: of the Industry. The ~onvotmg memb~r appointed by the 

Administrator to the ConstructiOn Code Authonty (or their proxies 
66~ 

r) ma r • r 111 lik a a 1 y with 

r spe t t an · \uthority. 

SE . :... E<1Ch u h iYi i n:.l l nth rity 'hall in ad iii n t 

any th r I ower · and lntie nferr cl ur n it in th chart r ar pli a1 tt it di,·i ·i n haY th followin(T p w r an 1 duti 

(a) It may tabli .. h rul . and regulati n ' f r th onduc 

affair · tllHl may UIJ int ll ·h C mmitt ao- n i an l 1' pr ntati y ~ an l leh:-o·at t them ·urh of it I ow r an l luti . a it may 

deem n c ·.·ary f r th rror c · eli har;' £ it.... functi n h r nn l r. 

(b) It :hall coop rat with th Admini trat r an l with th 

on.tructi n ode Auth rity in making inY iigations a t the 

fnnctionino· an l b rYan of any provi ion.· of thi.· od at it own 

in. tanc n· on complaint of an 1 erc:on aff ted and hall coll t 

fr m memb rs of th in ln try an l compil and furni h to the \.dmini trator an 1 t the Con. tru tion 'od uthority, an r port 

an 1 oth r infonna i n r quir d under the \..ct. Ex ept a ma r be 

required for the ffe ti v nforcement of the pro vi i n of thi ode 

th" report of in lividual member of the eli i ion required hall be 

·onfi 1ential an 1 only compiled ummari of uch indiYidual r -

1 ort hall be furni heel. 

(c) It hall tudy the provision incorporated in thi Code applicabl to it wn livi ion, and the operation thereof, and aft r 

ubmi ion to the on truction Code Authority may make u h re -

mn1endati ns to the Aclnjni trator as it deems de irable for mo lification or addition thereto. Such recommendations upon approval 

of the \.dmini trator after uch notice and hearing a he may precribe, ·hall become a part of this Code and have full force and effect 

a 1 r 'ision hereof. (d) It hall receive and o far a po sible adju t all complaint a 

to trade practice betwe n members of its divi ion in the operation 

of the prO'i'i ion of this ode applicable to its divisi n. 

(e) It may ·ecure an equitable and proportionate pa} ment of tft 

xpen e of it e tabli hment maintenance, and acti iti from member · of it liYi ·ion of the indu try. 

C. REPRE ENTATION AND ::\IEl\IBER HIP 

E TION 1. In ord r that the Con tru tion Cole Authority and th 

Divi i nal Code Authoriti hall at all time b truly repre entati v 

respectively of the indu try and of the division , and in oth r r -

. pect. compl with the provi ions of the ct the \..dmini tr·ator 

may provide u h hearin a he may d em appr priate · and th reafter if he hall find that the on tru tion 'od Authority or an r 

iYi. ·i nal ole iuthorit , i n t truly repre ntative or do n t 

in oth r r p t comply with the pr i ion of th \. t, he may 

r 1uir an apr ropriate mo lification in th m hod f · 1 -tion of 

the n tru ·ti n Code Authorit), or of any Divi i nal ocl Authority a the ca e may b . 

E . 2. The 1 n or of thi ole who pattici1 ate in th ele tion 

of an 'o I uthority or ndministrativ a<Y n y 1 r vi led for h r in, 

hall ubn it t th \.dmini.trat r tru opie f th ir \..rti l f 

A · ociati n or Inc q oruti n Con titution and 5 -Law and oth r 

p rtin nt rules and regulati ns anu any am nclm nt \Yhen made 
663 

thereto, together with uch other information as to organization, 

membership, and activitie a:s the Administrator may deem nece sary. 

In addition to the information required to be submitted by members of the industry or its divisions under this Code, there shall be 

furnished to government agencies such statistical information as 

the Administrator may deen1 nece sary 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 Authoritv, or any committee or agency 

thereof partners for any purpose. No member of the industry shall 

be liable in any 1nanner 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 Aut.hority, committee, or agency. Nor shall any member of any such Code Authority, 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 misfeasance or nonfeasance. 

ARTICLE V-APPEALS 

SECTION 1. The Construction Code Authority shall establish, under 

nlles 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 pecial contractors. 

SEc. 2. The Construction Appeals Board shall hear and determine 

the appeals referred to in Section 3 of this Article and shall likewise be empowered to determine, in the event of a conflict between the 

provisions of the various chapters hereof, applicable to specific divisions or subdivisions of the indu try, 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 

clivi ion 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 therefor and the decision of said 

Authority thereon may be api)ealed 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 prescribe, in respect of any decision, rule, regulation, order or finding 

made by the Construction Code Authority or the Construction 

Appeals Board. 
664 

SEo. 5. No de i ion, rule r gu1ation orcl r or finding shall be 

made by any e uth nty r thcr aclmini trativ ag n y exluding the B ard pro id d f r in Arti 1 III h r f, pro idecl 

f r in or pur uant to this d ' h th r 1 ad ptu· uant t th 

foregoing sections of thi \..rticl \ or th rwi of or in any di pute 

between employer an mploy or b tw en groups of mploy , includin in su h last-nam d lu es of di pute , any ca e or contr Yer who d t rminati n vwull clir ctly in olve or affect any 

3.i pute between rrroup of empl yee a to th right to perform 

I e ific types of work or o ration , including ca es commonly 

known a trade juri ictional di putes. 

ARTICLE VI-ADJ TMENT 

In the event that any member of the industry subject to this Code 

shall have contracted before June 16, 1933, to pur hase goods, structures, or parts thereof at a fixed price for delivery after that date 

and prior to the expiration of thi Code, it is equitable and promotive of the policies of the Act that an appropriate adjustment of said 

price be made to meet any increase in co t to the seller caused by 

the seller's having signed the President' R employment 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 

independent1 long-term contracts and agreements at fixed prices 

between vanous parties, such as owners (including government departments), contractors, subcontractors, and others, such adjustments may be made contingent upon similar appropriate adjustments 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. 

ARTIOLE VII-CoMPETITIVE BIDDING PRAOTICEs 

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 awarding authority to execute a specific program of work, furnishing a 

definite service or supplying a material p cifically requir d for a 

particular project at a stipulated price. This does not 1nclude furni hing quotations on standard products. 

(b) The term" awarding authority 'a used h r in 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 shop,Ping" are recognized as unfair and are prohibited. Bid 

peddling 1n effect means the offering by the bidder prior to the 

making of an award of a substitute b1d 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 

a warding authority to induce a bidder prior to the making of the 

award to lower his original bid price 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 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 unrea onable nwnber of bids is an economic waste, the awarding 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 consjdered by the awarding authority, unless the privilege 

of alternate proposals is extended to all bidders. 

SEC. 4. The awarding authority hall 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. . SEa. 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 performance 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 rec e~ving 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 uninvited bidders shall be returned unopened. All bids shall be required 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 informatiOn 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 without 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 

tipulate tim f r th r iving of bids except 

wh r an . t n i n tim has b n rNlU t fr m the bid r and 

ha en n nted t by b o or mor i d . In the ca e of bids 

c n liti n d Ul n th a·war 1 f a pr viou ontract ach sue ding a war 1inc:r authority hull mak an award orr ject all bi s within 

thirty (30) day af r th awarcl of uch revi us contract ex ept 

as t uch bidd r a khall agre to an xt nsion f tim . The right 

to r j ct any or all bids may be re rv:ed by the awar ing authority and uch r j ction hall be made in writing. Where all bids 

are rejected bid hall not be again invited or ubn1itted for the 

mer purpo e of obtaining a lo er or revi ed pri e or prices for 

ub tantially the same work previous to the elapse of ninety (90) 

day from the date of such rejection exc pt there be a substantial 

change in the plan andjor specification , or except there be evidence of collusion or except there be such a marked difference between the bids submitted and the awarding authority s estimate as 

to t.he 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. 

SEo. 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, 

di counts, or other special allowa.nces or services from a bidder 

unle included by the bidder in his original bid. 

SEo. 13. 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 a warding 

authority as herein defined unless such owner or other person agrees 

to comply with the regulations provided herein governing an awarding authority. 

SEo. 14. In order to enforce the practice of fair competitive bidding, 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 checking bids submitted by members of such division either by de ignating a depository for the filing of duplicate bids or by some other 

acceptable method. The Construction Code Authority may require 

uch changes in any such method as may be necessary to prevent 

conflict between the variou m thod which may be adopted by the 

various Divisional Code Authorities. 

ARTICLE VIII-GEJI.T"ERAL 

SECTION 1. Employ es shall have the right to organize and bargain 

collectively through repre entatives of their own choosing, and shall 

be free from the Interference, restraint, or coercion of employers of 

labor, or their atsents, in th designation of such representatives or 

in self-organizatiOn or in other concerted activities for the purpo e of 

collective bargaining or other mutual aid or pro ction · no employee 

and no one seeking mployment shall be required as a condition of 
667 

employment to join any company union or to refrain from joining, 

organizing, or as i ting a labor organization of his own choosing; 

employers shall comply with the maximum hour of labor, minimum 

rates of pay, and other conditions of employment, approved or prescribed by the President. 

SEc. 2. Employers shall not reclas ify employee or duties of occupations performed by employees with the intent or for the purpose 

of defeating the purposes of the Act. 

SE . 3. No provisions of thi Code shall super ede any State or 

Federal law imposing more stringent requirements on employers regulating the age of employees, wages, hours of worlr, 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 monopoli tic practice, or to 

eliminate or oppr s or eli criminate against small enterprises. 

SEc. 5. Additional chapters to thi ode may be submitted to the 

Con trnction Code Authority for nbmi. ion by it for the approYal 

of the President but nothing contained herein shall be construed to 

prevent any representatiYe association or gToup from submitting any 

such chapter directly to the President for his ar proval, provided that 

the Construction Code Authority, if then e tabli hed, shall IJe given 

an ample opportunity to con ider and examine any such chapter 

prior to it submi sion to the Pre ident to the end that there may be 

proper coorJination within the in lu try and between its various 

divisions and subdivisions. Upon approval by the President, such 

chapter shall become an integral part of this Code the arne as if 

originally included herein, but any exceptions therein to the general 

provisions of thi Code shall apply only to the members of the division , or subdivi ion of the industry to which such chapter pertains. No specific pro vi ions of this Code applicable to its amendment or modification hall constitute a limitation upon any right 

to propo e such amendments or modification. which may be conferred by the Act. 

SEc. 6. This Code, and all the provisions thereof, and of any chapter thereof, are xpre sly made subject to the right of the President, 

in accor lance with the provi ions of sub ection (b) of Section 10 

of the Act, from time to time to cancel or modify any order, approval, 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 moclify hi approval of this Code, or of any additional 

chapter thereof, or any conditions imposed by him upon such 

approval. 

ApproYed ocle No. 244. 

RE>gil->try N . 1616- - -31. 

0 


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