Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-03-17
NO MORE GREAT
PROFITS ALLOWED
BY GOVERNMENT
New Form of Contract De-
clared by Experts to Be
"Profiteer Proof"
COST PLUS SYSTEM HAS
BEEN RADICALLY MODIFIED
Contractors May Not Increase
Their Fees by Running Up
Construction Cost.
NEW DIVISION Is CREATED
War Department Puts Great Build
ing Program OF Billion Dollars
on Business Basis.
COST PLUS SYSTEM HAS
BEEN RADICALLY MODIFIED
Ew DIVISION IS CREATED
War Department Puts Great Build.
ing Program OF Billion Dollars
on Business Basis.
inr As,ncia,cd rrcer.l-


WAGIINGTON, March lG.-With tho
creation of "a construction division in
tho War Department to-day TO handle
tho largest single building program In
histor:-agsrcsatinE sl,0Si.000,o00 -
board of eminent experts appointed by
Acting Secretary C-owcil reported that
the present form OF contract is
'Proiitccr proof"
Tho new construction division VIII
replace the cantonncnt division. which
did the preliminary work Of building
Ma ,Ionai Army camps. and viii carry
OF an Immense building program In
yoiring hundreds Of thousands OF
workmcn and extensive structures 70!
tho army throughout tho country. II
H III be under tho immediate direction
of the chief OF staff, and is headed by
Professor A. y. Talbot, OF the un!Tcr-
sisy OF Illinois. president OF the .Amcri-
cau Society OF civil Engineers. r..
Goodwyn Rhet:, of Charleston. $. C..
president o. the Chamber OF Commerce
or tho United States, is another mem
her.
Because OF the hundreds OF millions
OF dollars involved. the board was
asked to examine the present form OF
contract. and, Il necessary. propose a
new one. The board reported:
MAY START WORK WEEKS
BEFORE DETAILS COMPLETED
The form Of contract permits start
ing actual work weeks, and even
months. before the details are COM
plctcly worked out and de!ineatcd. and
permits tho government 10 push the
Job at any speed 1t may elect, changing
at VIII Its scope and plan. but paying
only what the work actually costs plus
u fee which is SO reasonable as TO be
above the reach OF fa!r-m!ndcd cr!ti-
cisnn.''
This form Of contract, SO thoroughly
approved, Is known as the "cost-p!us
sliding scale OF fixed fee in which
fixed fees 10 contractors range from
: per cent on contracts OF 5I06,oo0 or
less down 10 As low As / 81 per cent
on the very largest sums.
The fee. according 20 this form. Is
axed when the contract IS let. and X
the cost exceeds the estimate because
Of higher labor and material prices
tho contractor receives no additional
compensation whatever, Labor and
material prices Will BE- subject 20 APP
! provai by the government.
lDOOR Is SHIT ON
PADDING or ENpENSEs
Under ether forms OF the cost plus
contract so wide.y attacked in Con-
crcss, !; was possible for contractor
/ y running MP labor charges and pay
Ing ox;ravaSant prices FOR material. TO
increase his fee accordingly.
\ survey nt the work 10 be done By
the new Construction" division indicates
the magnitude: ci the governments
to push the war 10 a sue
ces3tul conclusion. There are already
under way in tie United states eighty
Hive big Jobs, aggrcsating sos. 600.
There are In prospect now 1oe more,
representing S2.S,60o,00o. In addition,
there are forty jobs for housing troops.
representing S33o.000.000 while hos
II pital construction alone represents
81 Q. 100000.
LWOUK IN PROSPECT
or TREMENDOUS EXTENT
The work in prospcc. inciu1es stor-
age terminals at Charleston. :. c.. ana!
,hir;y-r r,sht ot.:e" points: signal corps,
canton,ncnts aEl aviation iic,ls at fo~;y
points. powder loading plants and c:l
nance depots OH the Atlantic seaboard:
housing facilities for shipworkers at
sixteen points: tuberculosis hospitals at
Denver. Col. and Azalea. y. c.: re-
mount station at Charleston. s. c.: me-
chanical repair shops in Texas; three
great Office buildings In Washington in
addition TO those under way; n hospital
at Fort Riley. Kansas; an isolation hos
pital at Tenaiy. y. j.; extensions OF
1.-THE Springfield. Mass, arsenal gas
making plants and gas-shcll- Hing
plants at many points.
Contracts have not been let for the
majority Of the great projects. and the
definite locations OF all CT them have
not hacl so fully determined as to war