The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-10-10
WORK TO Be DONE
UNDER CONTRACT
Invitations for Proposals to
Complete Panama Canal
Issued by Commission.
SH0NTS' LETTER TO TAFT
PERCENTAGE SYSTEM DECIDED
UPON.


proposals. to complete the Panama canal
were issued today by the canal commits
sion. md the form OF contract under
"hich he work is to be done was made
public (by Chairman Shonts, who also
Of Sf Wa Put letter written to the secretary
, ~ ~ giving the commissions reason for
- ~ racting the work.
e. The contract provides that each bid
: der must undertake the entire work of
construction. No bar will be offered TO
corporations associating in the undertake
ing. but they must be legally organized
into single body with which the govern
ment can deal. Bidders will not be con-
sidered who do not have available CAPT.
tai of S5.OOO0Oo. A certified check for
100000 is required with each proposal and
bond of S3,G00.000 will be required from
tho successful bidder The bidding is not
limited TO American contractors. All
proposals are TO be in before noon of
Dec u. when they will be opened.
Will Be Given Reasonable Time.
Proposals are TO be expressed in terms
OF percentage upon the estimated cost of
construction. which is TO be fixed by a
board OF five engineers, three represent
Ing the government and two representing
Inc contractor. The chief engineer of the
canal commission is to be chairman of the
engineering board. The engineering board
VIII also estimate a reasonable time for
the completion of the canal and will
agree upon system Of premiums and
penalties 60 be paid to the contractor &C
cording as the work is completed within
or beyond the estimated cost and time
All the government plant for actual con-
struction work. including the railway is
10 be placed at the disposal of the con-
tractor and as to be maintained by the
! government.
Commission Will Control.
The contract specifies that the commits
sion Is to retain control of all engineering
work in connection with the construction
OF the canal. also municipal engineering
the police. sanitary, hospital and commits
sary departments, mess houses. quar-
ters, construction and maintenance OF
buildings. operation OF the Panama rail-
way. an auditing department. to which
contractors accounts are to be open, and
department of materials and supplies
Sixty days after the signing of the con-
tract actual work is to begin on the 18TH
mus. and the contractor is TO take over
all employees on the isthmus which the
commission does not wish to retain. No
american employees are TO work more
than eight hours.
Defends Percentage System.
Chairman Shonts defends the percentage
system of payment in his letter TO Sec
rotary Taft follows:
This plan is being employed by the
oldest. largest and most successful cor
porations in the country.
The government will get the benefit
Of the combined efforts of the best and
most experienced contractors in the
world. each in charge of a department
in which he is a specialist and co-operat-
ing with other specialists
The government will secure the CO.
operation OF these powerful interests I'm
keeping mechanics of all classes.
The plan offers every incentive for
speedy and economical construction by
penaliZing extra time and cost and re-
warding better than contract performance
as to either.
BY retaining control of the work and
keeping strict supervision through it's en-
cheering force the government will pro
tect itself against cheap or faulty con-
struction
Flexible Contract.
"The contract will be more flexible.
The time and cost of completing the ca
nal as estimated will in all probability
be reduced by the application of new prin-
cDles which will r discovered as the
work progresses. Finally. a termination
Of the contract. should it become neces-
sary. would be less disastrous to the con-
tractor. while an effective resumption
OF the work would be made easier to the
government owing TO its close relations
thereto"
In support of the commissions posi-
ton that the canal can be contracted to a
greater advantage than il can be built
by the government. Mr.. Shonts' letter
says that because of the unprecedented
and greatly extended industrial activity
OF the time. and the consequent violent
competition for all class of superintend-
Cnts. fOremen. sub-contractors. skilled |
mechanics and even ordinary laborers IL !
would take the commission years to Sc !
cure men and build up departmental con-
IN efficiency those now controlled by the |
leading contractors of the United |
States.
Other Plans Considered.
Chairman Shonts says in his letter that
n or fall Let