J 

t 

Regi try No. 1719-2-18 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

PROFESSIONAL ENGINEER'S 

DIVISION OF THE CONSTRUCTION 

INDUSTRY 

AS SUBMITTED ON AUGUST 31, 1933 

WE DO OUR PART 

r ' • 

The Code for the 

I 

~ J 

Professiona(Engineer's Division of the Construction 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 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the 'uperintendent of Documents, Washington, D.C. - - - • - • - - Price 5 cents 
SUBMITTED BY 

AMERICAN SOCIETY OF CIVIL ENGINEERS 

(n) 
PROPOSED CODE OF FAIR COMPETITION FOR THE PROFESSIONAL ENGINEER'S DIVISION OF THE CONSTRUCTION INDUSTRY 

PREAMBLE 

The American Society of Civil Engineers, organized in 1852, a 

national association representing the Profession of Civil Engineering, 

pursuant to the intention of the Engineering Profession, insofar as 

the practice of the engineering profession is a function of the Construc- tion Industry, to cooperate with the President of the United States in 

effectua ing Title No. I of the National Industrial Recovery Act, 

during the period of the emergency, hereby recommends and submits 

for approval pursuant to Section 3 of said Title, the following Code of 

Fair Competition covering relations between professional engineers, 

client or employers, employees and others in respect to all con truc- tion work; this Code having been subscribed to by duly authorized 

repr entative of the following professional engineering organizations. 

In submitting this Code for the approval of the President and in 

tendering their agencies for the enforcement thereof, the American 

Society of Civil Engineers and the other organizations subscribing 

above declare 

a. that they are truly representative of the engineering profes ion in 

so far as it is functional to the Construction Industry; 

b. that th y impose no inequitable restrictions on admission to their ~~&~; • 

c. that this Code will not permit monopolies or tend toward exces- sive fees or wages, but will tend toward fair fees and wages and the 

eradication of unethical and unfair pra tice such as "bid -shopping" 

and enforced unfair ompetition between engineers, and toward the 

e tablishment of better professional standards of practice; 

d. hat this Code is intended to eliminate unfair competitive 

practice and to advance the public interest and nO'in ering tandard , and to improve tandards of working condition and living, and 

ffectuate the spirit of the policie et forth in theN ational Indu trial 

Reco ery A t. 

ARTICLE I - THE GENERAL CoDE 

The ode of Fair ompetition for the Con truction Indu try, as 

approved by the re id nt of th nited tate , i adop d and made 

a part h r of and hall be at a h d h r to, and an provi i n of thi 

ode f Fair omp titi n for Profes ional Engineers whi h may be 

incon i t nt th rewith ball ield theret . 

9962- 33 (1) 

I 
2 

ARTICLE II-DEFI ITION AND F CTION 

Professional Engineer.-In the meaninO' and appli ation of thi Code 

a profe i nal ngineer hall be con ider d t b n,nd includ an individual, partner~hip, or engineering orporation legally operating in 

re ponsible charge of the d ign or up ryi ion of con truction work; 

or :1 per on in the emplo of the san1e and "Tho i r gi tered or licensed 

in accordanc 'vith the pro\'"i ion of law to practice engineering, r 

any subdi,~i ion thereof, within any State or T rritory of the UnitEd 

tate · or any per on n,dmitted to or eligible b reason of t chnical 

trainino· for ad1ni sion to memb rship in any national, tat , or 

regional profe ional engineering organiz ti0a, in grad s which 

require, as a con tituti nal pro·vision, acti'e practice as an engine r 

for not le than eight year and re pon ibl charge of engineering 

work for not less than one year; active practice and responsible charge 

of engineering when functional to the construction industry to be 

detern1ined a defined in the Con titution of the American Society 

of icl Engin ers. 

\\here used hereinafter the word "engineer" shall be constru d as 

an abbrenation of the term 'professional engineer" as herein defined. 

In the meaning and application of this Code the functions of an 

engineer hall include the economics of, and the use and de ign of, 

rna terials of con truction and the determination of their physical 

qualities; up rvi ion of the construction of engineering structures; 

the investigation of the laws, phenomena, and forces of Nature; 

when any of the sn,me are involved or employed in conne tion with 

fixed works for any or all of the following divisions or subjects; irrigation, drainage, water power, water supply, flood control, inland 

waterway , harbor , municipal improvements, railroads, highways, 

tunnels, air ports and airways, purifi ation of water, sewern,ge, r fuse 

disposal, foundations or substructures, framed or homog neou structures, buildings and bridges· they shall include the investigation of, 

the design f, and the selection of, the force-r i ting and load supporting n1embers of structures; such as foundations, walls, columns, 

bearns, girders, slabs, trus es, and similar members; and the investigation of, design of, and selection of mechanical, electrical, or sanitary component parts of structures; where su h investigation, design, 

and selection require a knowledge of engineering laws, forn1ulae and 

praetice, a knowledge of the ph sical properties of the materials used, 

and a knmvledge of the methods used in their installation; and the 

supervi ion and coordination of the design and execution thereof. 

Anyone performing anv of these functions shall be considered an 

engineer subje t to all of the conditions of qualification and experi- en e in the aboYe definition of a profe sional engineer, and subject 

to all eondition and regulations of thi Code. 

Where a Professional Engineer registration or license law is in 

effeet, any regi tered or licensed professional engineer shall be entitled 

to practiee a an engineer but shall not be relieved by that fact from 

any of the provi ion of thi Code. 

Engineering A istant.-In the meaning and application of this 

Code an engineering as i tant shall be any per on who, not regi tered 

or licensed by any state or territroy to practice engineering a.s a 

profession and not eligible for m.emb rship as hereinbefore defined in 

any profes ional engineering organization providing for membership 
3 

rib d, i mplo d t r nd r technical r th r 

ervi s f a ubpr f i nal natur und r th dire tion of an nO'in r. 

lient.-J.. lient hall be an indiYiclual, firm, corporation, or ovrnm ntal aO'en y who engage th rvice of an engineer on a fee 

ba i . 

Employer.- in empl er hall be an. individual, firm, corporation, 

or O'O\ernm ntal aO'en y who en aO'e the servi e of an engin er or 

an engineerinO' a i tant on a , alary or wage ba i . 

Oontractor.-A contra tor shall be any individual, firm, corporation, 

or agency ontracting to perform the work called for by the engineers 

plan and pecification . 

ARTICLE III-REQUIRED PROVISIONS 

Encineering a si tants hall have the right to organize and to deal 

collectively, through an agency or organization of their own choosing, 

with an employer. o engineering a sistant shall be required to join or affiJiate with 

any agency or organization, nor shall he be compelled to deal with 

an employ r through such channels. Neither shall he be re trained 

from voluntary affiliation with, or use of, any agency or orO'anization. 

Each engineering a sistant shall recognize t.he contractual relations 

of employer and employee and failure to render in full the services 

agreed upon shall be considered as a violation of this Code. 

In filing this code, it is agreed that as a condition of approval, 

the Pre ident may impose such condi ions, modifications, or addition , exceptions, or exemptions as he may deem necessary or expedient in 

the public interest to effectuate the policy established in Title I of 

the National Industrial Recovery Act. 

a. Minimum Wages.-No engineer or engineering assistant, employed on a salary or wage basis, shall be paid less than the minimum 

rates which are established regionally or locally by mutual agree- ments between truly representative groups of employers and em- ployees or as established or approved by the National Control Com- mittee, as defined in Article VII, through its subordinate regional, 

state or lo al committees, and approved by the President, as provided 

by Section 7 (b) of the ationn1 Industrial Recovery Act. Where 

such rates are not so e tablished, the minimum rates of wages shall be 

not le s than those required by Arti le 3-' Minimum Wages of the 

'Code of air Competition for the Construction Indu try'". 

b. 1aximum I-lours.-Maximum working hours for engin ering 

as i tant shall be in accordance with Article 4-"Maximum Hours 

of the 'Code of Fair Comp tition for the Construction Indu try'". 

c. Age Limit.- Engineers shall not mploy anyone le s than sixt en ears of age, x pt that per on b tw n fourteen and L'deen 

may be emplo ed for not to exceed three hours per day b tween 

7 A.1I. and 7 P.M. on uch work will not inter£ re ·with hour of 

day chool. 

d. tabil'zation of Employment.-Engin r hall admini ter th ir 

fun tion o to provide the maximum pra ti able continuit f 

employment to tho in their employ. 
4 

ARTICLE IV-REGULATIONS GovERNING RELATIONS BETWEEN 

ENGINEERS A D THEIR CLIENTS OR EMPLOYERS 

Where the engineer's services involve a fee of $1,000 or more, his 

relations with, and responsibilities to his client shall be evidenced by 

duly executed written agreements. Neither of the contracting parties 

shall assume any of the duties or responsibilities hereinafter defined 

a obligatory on the other nor may one of the contracting parties 

receive any part of the pay or profit hereinafter defined as belonging 

to the other. 

An engineer shall at all times abide by the "Code of Ethics" 

adopted by the American Society of Civil Engineers, September 2, 

1914, and by the "Code of Practice of the American Society of Civil 

Engineers", adopted January 18, 1927, which are appended hereto, 

and these codes of ethics and practice are hereby made a part of this 

Code of Fair Competition, and subject to the same conditions of 

enforcement as if herein written in full. Violation of this "Code of 

Fair Competition for Professional Engineers" shall justify cancellation of relations by a client, dismissal by an employer or discipline 

by the National Control Committee and/or prosecution at law under 

the provision of the National Industrial Recovery Act. 

An engineer shall not.-a. Acquire 1 own or otherwise benefit by the 

purchase, sale, or ownership in any real estate or business interest 

which may be affected by any work for which he shares responsibility, 

except with full knowledge and consent of his employer. 

b. Own stock in, or have other interest in, or in any way benefit 

from the business of a contractor employed on any work for which the 

engineer shares responsibility, except with the full lmowledge and 

consent of his employer. 

c. Accept any pay or commission, except as clearly stipulated in his 

contract or terms of employment, for the use of any materials, patented 

device, appliance, tool, or method employed on the work. 

d. Accept any fee or gratuity for engineering or other services 

rendered to any contractor or subcontractor engaged on the work for 

which the engineer is engaged as the client's or employer's representative, or accept compensation, financial or otherwise for services in 

connection with such project, from any person other than his client 

or employer, except with the full knowledge and consent of his employer. Nothing herein shall be construed to operate against the 

prevailing and good practice by contractors and subcontractors of 

engaging engineers, other than the engineer of record for the work, to 

render engineering services to them in connection with their engagement as contractors or subcontractors. 

e. Specify, direct, invite, or accept engineering designs, studies or 

sketches from a contractor, subcontractor, or supplier of materials, 

interested in the work or in bidding on any element of the work, 

where such are services herein defined, or defined in his agreement with 

his client or employer, as being the responsibility and duty of the 

engineer. This does not debar the customary shop and working 

drawinge, made by contractors for the work to be executed by them, 

nor the use of technical trade information issued by producers for the 

information of engineers. 

f. .Give any rebate, discount, bonus, fee, or commission in order to 

reduce his fee, or to influence or procure employment. 
5 

RTI L V- FAIR RA TI • 
6 

for and not indicated by his plans and specifications and should not 

require that the work be acceptable to the engineer except in conformity with stipulated requirements of the plans and specifications. Where necessary, the engineer should obtain adequate and ufficient 

subsoil data and subsoil tests and he should supply such infonnation 

to the bidders. He should stipulate fair and equitable liability and 

damage insurance, and bonus, damage, and indemnity provi ions, 

where any or all of same are required. 

The engineer shall observe the rules of fairn~ss in making known all 

requirements for the work for which he is responsible. 

Arbitration according to the procedure of the American Arbitration 

Association shall be accepted as the approved method for adjudication 

of disputes, after decision by the engineer, and precedent to action ·at law. 

Contractors and others furnishing materials shall not include engineering designs· or engineering services with the furnishing of materials 

except as hereinbefore provided in Article IV, e, and then only when 

1naking a separate and distinct charge for the same to be paid by the 

owner, said charge to be not less than the usual or pre cribed professio~al c~arge mn:de by engineers for such engineering designs or other 

eng1neenng services. 

The engineer shall definitely establish in his design and specifica- tions, the amounts of tolerance which will be permissible, and shall 

include definite provisions for additional installations, replacements, 

etc., if such tolerances are exceeded . The engineer shall state clearly the time requirement of the various 

elements of the work or shall require the contractor to state them at 

the time of bidding. 

The engineer shall not subn1it his design drawings and specifications 

for contractor's bid until he has developed adequate preliminary in- formation and essen tial pertinent data. He shall provide the contractor with opportunity to satisfy himself as to the adequacy of the 

engineering information given and the practicability of the type and 

method of installation shown on the engineer's design and covered in 

his specifications. Adequate information should be issued to all 

bidders alike and the engineer should require the successful contractor 

to recognize and accept his full responsibility for the successful and 

safe prosecution and completion of the work in accordance 'vith the 

contract documents. The engineer shall pern1it the contractor to 

submit, for the engineer's consideration, plans and details showing the ·contractor's proposed methods of installation, plant layout, and erec- tion of temporary structures, and require that the engineers consent 

be received by the contractor before such 1nethods are adopted. 

The engineer shall require that if there be any existing hazards for 

which the contractor is unwilling to accept responsibility, such ex- ceptions be evidenced by the contractor prior to the signing of his 

contract. 

The engineer, where so engaged, shall provide adequate and suffi- cient field supervision and inspection of the work and shall at all times 

be ready to accept or reject any part of the work as the installation 

proceeds. 
7 

...' .. RTI LE YT-RE L TI N OVER. IX THE EN INEER 

gmz1n 0' the inh rent di:fl' r nr e in cu t ms nd pro d ur 

th vari u br( n he of nO'in rino· involved in the 0' n ral 

n tru tion and that in any bran h of ngin ring, u toms 

dur differ d p ndinO' upon th magnitude and complexity 

f a pr j ct and upon th . peri en and record of accompli hmen ts 

f difl' r nt engin r and that ome engineers are esp cially exp rt 

in hi hly pecialize field of nO'in ering, this Article is neces arily a 

generalized staten1 nt of th duties to he undertaken and performed by 

the engin r. It i O'OOd practi e that there hall be engaged engineer 

kille l in the sp cialized fields of engineering. This article does not 

co er detailed it ms of service incident to highly specialized fields of 

engineerinO', or to preliminary investigations or reports as to the 

feasibility f project , but is a statement of mini1num services to be 

perforn1 d by the engineer, the respon ibilities for which may not be 

delegated by him except that this shall not prevent the employment 

of pecial services for surveys, subsoil investigations, laboratory 

analyses and tests, and similar services under the direction of the 

engineer as a separate account. 

A. I nve tigations.-a. Investigations, surveys, and collection of 

all nece sury or essential data, assuring the accuracy and completeness 

of such data in so far as it controls the type of design, method of 

installation, stability of structure, or completeness or fairness of the 

bids on the finished work. 

b. Studies, preliminary designs and, where necessary or desirable, 

comparative cost estimates of same, in order to determine the ultimate 

design which will for safety and permanence best satisfy the requirements for feasibility of construction and economy. 

c. Where necessary or desirable a report setting forth recommendations with such supporting statements, data and such drawings as 

are necessary for a clear understanding of the recommendations and 

the reasons therefor. 

B. Designs, Contract Drawings, and Speci.fications.-a. Complete 

design of the work including all necesasry design and contract 

drawing bowing de ign details for the complete construction and/or 

in tallation of the work overed. 

b. Complete specification describing all elements of the work 

covered, particularly such elements as are not clearly or sufficiently 

detailed in the drawings, such specifications to outline methods called 

for as being acceptable to the engineer. 

c. Invitation to bidders containing information sufficient to enable 

an experienced contra tor to make a complete and fair bid covering 

the work. . ldt~sory upenYision of Oonstruction.-a. General supervision 

and coordination of the in tall a tion of the work. 

b. E timates of the value of work installed for partial and final 

pa ·ment to contra tors wh n n cessary or advisable . . Survey, record drawing , and rtification as to the completion of 

con tractor's w rk. 

etailed Resident Supervi ion of Oonstruction.-a. Resident 

sup rvi. ion an d tailed inspe tion f the work. 

b. Fiel and/or shop in pection and t t of materials and quip- ment. 
8 

To effectuate the declared policy of th National Indu trial Recovery Act, "to eliminate tmfair competitive practices", and 'to 

rehabilitate indu try", the engineers procedur for the sele tion of a 

contractor by competitivP. bidding hall be governed by the following 

ba ic principles. 

Fair competi ion shall include consideration o£ capability, experience, honesty, financial tnbilit , price, and tin1 . The form of contract affects bidding; the followinO' forms of contract 

procedure, whether for entire project or for any segregated component part thereof, are recognized as proper; (1) lump sun1; (2) 

guaranteed outside price; (3) cost of work plus a fee; (4) unit prices. 

The engineer should limit the bidding to contractors who have 

properly prequalified as to reputation, experience, and responsibility. 

He shall not recommend the award of the work unless the contractor 

can demonstrate to th~ awarding authorities that be is competent, 

technically and financially. A contract bond when required, shall 

not be held to reinforce or enhance a bidder's credit, stability or 

capacity, but shall be considered only as a protection against business 

accidents. Any bid may be accepted at the price originally submitted 

except as otherwise covered by law. 

The engineer shall not sanction or permit the payment of any fees, 

bonuses, or other forms of payment by any bidder for services rendered 

in connection with securing an award, nor the disclosure by any con- tractor of any bid to a competitor or otherwise to induce secondary 

bidding, nor to engage in the unfair practice lmown as "bid peddling." 

The engineer shall require that every rebate, refund, allovvance, 

discount, commission, or service privilege in whatever form, be ex- tended by a vendor to every purchaser under like term and conditions. 

To secure fair competitions as defined hereinbefore, no product or 

service shall be obtained below cost. 

When practicable, bids shall be accepted within 20 days from bid 

date and quotations thereon by suppliers of material shall be held 

subject to acceptance within 30 days of such bid date. 

All sales by suppliers of material to a contractor, except for cash, 

shall be stopped after 60 days' credit, unless through no fault of the 

contractor, payments to him have not been made in accordance w·ith 

his contract. 

ARTICLE VII-ADMINISTRATION 

Amendments.-Amendments or revisions to this Code may be 

proposed by any truly representative professional engineering organization providing for membership a hereinbefore described, acting 

through the National Control Committee hereinafter defined. 

J\Tational Control Committee.-To effectuate the purposes of thi 

Code and provide for administrative control within the engineering 

profes ion, in so far as it is a function of the construction industry, 

aN ational Control Committee shall be established compo ed of four 

engineers appointed by the American Society of Civil Engineers, and 

one engineer appointed by each of the national professional engineering organizations providing constitutional provisions for member hip as hereinbefore defined in Article II, and which are in icated 

in the first paragraph of the Preamble of this Code as having ubscribed to this Code, and two en ineer at large to be selected by 

the beforementioned men1bers to repre ent the engineers who have 

no national professional engineering society affiliation. 
g 

Thi contr l 1nmitte v full u h ri y t 

n dful rul and r O'ulati n f r h admini tr 

f the pro i ion of thi e. Thi ontrol 

full auth ri y t e abli h u h ub onunitte nd u h ubordinate 

l l ta and r gi nal nunitt e n to pr rib u h duties, 

rul , and r gulation a are d m d nee ary to arry out the purpo of thi ode and of th ati nal Indu tri 1 Reco-v ry t. 

In h e tabli hm nt of ea h u h tate committee (or where there 

i no tate conunittee, in each r gional committee), th re hall be 

on r pre ntative, for each ta e, from the re ogniz d exi ting or 

her aft r created ate profe ioanl ociety, in which member hip is 

nting nt upon legal admission to the practice of engineering within 

that ate. uch repre entative hall be designated by such recogniz state so iety. 

The National Control Committee shall coordinate its act with 

the adn1ini trative agency establi hed under the Code of Fair Competition for the Con truction Indu try. 

Admini tration Expense.-All engineers in so far a their practice 

i a function of the con truction industry and as defined in thi Code 

hall bear their proportionate share of the expense of admini tration 

of thi ode under such rules and regulations as may be approved 

by he Pre ident under Section 10 (a) of Title I of theN ational Industrial Recovery Act. 

Effective Date.-This Code shall be effective when approved by the 

Pre ident of the United States and shall be applicable only to profes ional engineering services functional to the Construction Industry 

undertaken after such approval date. 

0 
,I 



UNIVER SITY OF FLO RIDA 

111111111111111111111111111111111111111111111111111111111111111 1 

3 1262 08855 5650