NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR c ,oMPETITION 

FOR THE 

ENGINEERING INSPECTION 

INDUSTRY 

AS SUBMITTED ON AUGUST 24, 1933 

REGISTRY No. 1734-04 

The Code for the Engineering Inspection Industry 

in its present form merely reflects tlte 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 

UNIV. Ofl· FL UI. 

U.-.J. DEP08tTOCIW _ _ _________ .. -"PlMM STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

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CODE OF FAIR COMPETITION FOR THE ENGINEERING 

INSPECTION INDUSTRY 

To effectuate the policy of Title I of the National Industrial Recovery Act during the period of the emergency, in providing for the 

general welfare by promoting the organization of industry for the 

purpose of cooperative action in order to eliminate unfair competitive 

practices, to increase the conslJ.mption of industrial and agricultural 

products by increasing purchasing power, to reduce unemployment, 

to improve the standards of labor, and to otherwise rehabilitate the 

Engineering Inspection Industry, the following Provisions are established as a Code of Fair Competition for this Industry: 

1. FOREWORD 

The Engineering Inspection Industry is small in number of firms 

engaged in this Industry, the total of such firms regularly engaged 

in rendering their services being approximately sixty-five. One or 

more of these firms are located in practically every principal city of 

the United States. The Industry, therefore, is organized to serve 

clients in every section of the country. 

Engineering Inspection firms engage in the business of inspecting 

and testing the materials, and their application, which go into public 

and private construction, engineering projects, and industrial plants. 

Members of this Industry maintain organizations whose business 

is that of independently obtaining and reporting facts to their clients 

with regard to compliance by contractors, sellers, and others, with 

specifications, or other contractural agreements. 

Such services are widely adopted, particularly in the field of public 

and private construc.tion, and hundreds of millions of dollars per year 

are spent subject to the services, certificates, and approval of members 

of this Industry. 

Therefore, economic and competitive conditions which adversely 'affect this Industry, its personnel and the character of its services, ·react not only to the disadvantage of the Industry, but to the investor, 

owner, lessor, architect, engineer, contractor, and that portion of the 

public directly concerned with the project or products subject to 

engineering inspection. 

Competitive bidding for engineering inspection services, as rendered 

by this Industry, has been fostered by Federal, State, Municipal and 

private organizations, and has put a premium upon price and minimized the character of the services rendered to the point of vanished 

profits and wholesale unemployment for the Industry as a whole. 

Under such conditions, further augmented by the fight of individual 

firms for survival, proper performance of contracts from clients is 

possible only at constant and continuing losses. 

This has reflected directly upon labor engaged upon the work, 

whereby inspectors, laboratory workers, and other personnel have been 

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reduc d to no empl yment, part-time emplo n1 nt, or employment at 

rate of comp n ation below that ne e ar for a fair and decent 

standard of living. 

Thi Foreword i O'iven in order that a broader under tanding of the 

nece it of a od of Fair ompetition for thi Industry may be 

recognized: 

(a) Due to the importance to the public of the services rendered by 

the Engineering Inspection Industry. 

(b) Due to the lack of familiarity of public and private officials 

with the nature and problems of the Industry. 

( c) Due to the necessity for a clear understanding of the services 

rendered by the Engineering Inspection Industry, in order to visualize 

the underlying necessity for the Provisions incorporated in this Code 

of Fair Competition. 

2. DEFINITIONS 

The term, "Engineering Inspection Industry," as used herein, 

designates as a class, Engineering Inspection Organizations of the 

nited States. 

An "Engineering Inspection Organization" is an individual, 

partnership, or corporation regularly engaged in the business of testing and/or inspecting, engineering, construction, and/or industrial 

materials, and the application thereof. 

A "Non-Technical Employee" is an employee of an Engineering 

Inspection Organization whose duties do not require particular skill, 

training or experience in connection vnth the technical services 

rendered by the Industry. 

A "Semi-Technical Employee" is one whose duties require a higher 

degree of skill, training or experience in connection with his employment. 

A "Technical Employee" is one whose education, training, and 

experience fit him for rendering the type and character of technical 

service required in this field of acti, ity. 

"Effective Date," as used herein is defined to be August 14th, orif this Code shall not have been approved by the President ten days 

prior thereto, then ten days after such approval. 

3. MAXIMUM HOURS OF WORK AND MINIMUM RATES OF PAY 

(a) This Industry is confronted with a peak-load season in the construction industry, necessitating at times longer hours by the same 

individuals, due to the nature of the work. Also there are occasions 

when the same individual must work continuously upon an assignment, as the nature of the work will not permit its being stopped 

prior to completion. 

Or its being assigned to another individual. Hence, it is not fea ible 

to unqualifiedly place the Industry upon a straight weekly hour basis. 

To provide for this situation, after the effective date of this Code, 

no employee shall be employed in any calendar weekly period to 

exceed 48 hours, nor in any calendar monthly period to exceed an 

average per week of 40 hours, except executive and supervisory employees receiving in excess of $35.00 per week. 

(b) Minimum rates of pay shall be as follows: 

(1) on technical employees, 30¢ per hour or $12 per week of 

40 hours. 
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(2) Semitechnical employees, 45¢ per hour or $18 per week of 

40 hours. 

(3) Technical employees, 60¢ per hour or $24 per week of 40 hours. 

4. AGE LIMIT 

No one under 16 years of age shall be knowingly employed within 

the Engineering Inspection Industry, provided that where any state 

or other statute requires a higher age limit, said statute shall govern. 

5. MINIMUM PRICES 

On and after the effective date the following schedule shall be 

adopted as representing the minimum prices for which services may 

be quoted and executed: 

(a) Cement, A.S.T.M. Requirements, 2¢ per barrel. 

(b) Structural Steel: 

(1) Mill inspection, 20¢ per net ton. 

(2) Shop inspection, up to500 tons, 50¢ per net ton. 

500 tons and over, 40¢ per net ton. 

(3) Field inspection, up to500 tons, 45¢ per net ton. 

500 tons and over, 35¢ per net ton. 

(c) Concrete reinforcing steel (mill or warehouse), 25¢ per net ton. 

(d) Cast iron pipe, 25¢ per net ton. 

(e) Lumber: . (1) Treated, $1.00 per M Ft. B/M. 

(2) Untreated, 75¢ per M Ft. B/M. 

(f) Piles and Poles: 

(1) Treated, 1¢ per Linear Foot. 

(2) Untreated, %¢ per Linear Foot. 

(g) Cross ties, 2;~¢ per Tie. 

(h) Highway guard rail posts, %¢ per Linear Foot. 

(i) Concrete testing: 

(1) Cylinders, $1.50 each F.O.B. Laboratory. 

(j) All other engineering inspection and laboratory fees in connection with same shall be estimated upon the following basis: 

(1) Field inspection and tests per man employed, $15.00 per 

day, plus out of pocket traveling and maintenance 

expenses. 

(2) Laboratory tests and analyses in connection with engineering inspection work, per man employed, $25.00 per day. 

6-COMPLIANCE WITH SECTION 7 (A) OF TITLE I OF THE NATIONAL 

INDUSTRIAL RECOVERY A.cT 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from the interference, restraint, or coercion of employers of labor, 

or their agents, in the designation of such representatives, or in selforganization, or in other concerted activities for the purpose of collective bargaining, or other mutual aid, or protection. 

(b) No employee, and no one seeking employment, shall be required, as a condition of employment, to join any company union 
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r t r £rain fr m J mmg, r()'• n1z1ng, or a i tino- lab r ro-aniza.tion 

f hi own ch o ing. 

( ) E1nploy r hall c mpl, with th n1aximun1 h w· of lab r, 

111ini1num mt of pt y, and th r onditi n of mpl ym nt, approv d 

r pr rib d bv th Pre id nt. 

7-~1CCEPTA E OF O T~IDE E1 GI EERI G I PE TIO "\YORK BY 

p BLIC OR PRIVATE I rsTITUTIO OR ORGA IZATIO · 

ft r th eff ctiYe date any F d ml, tate, or uni ipal Bur au, 

Departn1 nt, or Oro-anization · an Edu ational In titution or m n1b r 

of the fa ulty or uch in titution; any pnvate 1ndiYidual, firin, corporation, or organization shall not accept a igmncnts for Eno-1ncering 

In pcction ervice from out id client at" fees low r than the 1ninimum pric schedule e tabli hed in Sectjon 5, abov , of thi Code of 

Fair Con1petition. 

8-MONOPOLIES 

(a) Thi ode is not designed to promote monopolies and hall not 

be availed of for that purpose. 

(b) The ProYisions of thi Code shall not be so interpreted or administered as to eliminate or oppress small enterprises or to di crimi- nate against them. 

9-Discou TS FOR CASH 

Cash discounts, under the Provisions of this Code, shall not exceed 

2%, 10 days; 30 days net. 

10. QuA TITY Discou TS 

Th ere shall be no discrimination in connection with q uan ti ty 

di counts which will result in fees lower than tho e governed by 

Section 5 abo, e of this Code. 

11. FAIR COMPETITION 

(a) The follm-ving shall be deemed a violation of the term of thi 

section of the Code: 

(1) 1Iisrepre entation of the types of service to be or a tually 

performed for client . (2) ntrue tatements regarding a competitive organization or 

any of its members. 

(3) ntrue tat n1ent r garding th integrit or abili y of the 

competitor to perfonn contra ts awarded to him. 

(4) Indu ino- a cancellation of an ord r alr ady plac d with a 

competitive firm. 

(b) In the e ent that any Engineering In p ction Organization 

shall feel that it . ha a co111plaint or grievan again t an other 

Engineering In pe tion Organization , ith regard to violation of 

thi ode, the former hall notify the latter in writino-, fully and frank- ly tating the circum tance invol ed. opy of thi 1 tt r hall be 

nt to th Engine ring In pe tion Group er tar . The 1nember 

re iving the omplaint hall in tigate th fact and frankl reply 

to the form r, al o nding copi s of the corre pond nc to th Group 
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Secretary. In the event that the two Organizations are unable to 

satisfactorily adjust the matter between themselves each shall appoint 

an investigator. These two investigators shall in turn appoint a 

third investigator in order that the three may ascertain the facts 

and report their findings. A copy of their report, as well as all 

intervening correspondence, shall also be placed in the hands of the 

Secretary of the Group. The information in the hands of the Secretary shall be available to any authorized representative of the Federal 

Government who may desire to inquire into the circumstances 

involved. 

It is distinctly understood that this Provision of the Code shall in 

no way prevent or interfere with the legal rights of any Engineering 

Inspection Organization, as provided for under the terms of the 

National Industrial Recovery Act. 

12-MEMBERSHIP 

Any Engineering Inspection Organization operating within the 

United States is eligible to membership in this Group, and to participate under this Code, upon written acceptance of this Code. 

13-CANCELLATION OR MODIFICATION 

This Code or any of its Provisions shall be cancelled or modified, 

and. any approved rule issued thereunder shall be ineffective to the 

extent necessary to conform to any action by the President under 

Section 10 (b) of the National Industrial Recovery Act in cancellation 

or modification of any order, approval, license, rule or regulation 

pertaining thereto. 

14-EFFECTIVENESS OF PROVISIONS OF THIS CODE 

If any Provision of this Code is declared invalid or unfavorable, by 

the President or his authorized representatives, the remaining Provisions shall nevertheless continue in full force and effect, as provided 

for in the National Industrial Recovery Act, the same as if they 

had been separately presented for approval, and approved by the 

President. 

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