The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1918-03-19
"PROFITEER PROOF"
SAID OF CONTRACT
New Construction Division Gre.
ated to ENpend Sum of
S1,Os4,OOO, 900.
10 SPEED UP THE WORK
The New Form of Contract Per.
mits Starting Actual Work
Months Before Details Are
Completely Worked Out.

Completely Worked Out.
washington, March 1S.-With the
creation of construction division in
the war department to handle tbe
largest single building program in
hlstory-ag -aggregating $1,O84,OOO 900
"a board Of eminent experts an
pointed by Acting Secretary Croweu
reported that the present form of
contract is 'profiteer proof"
The new construction division will
replace the cantonment division.
which did the work of building ma
tlonal army camps, and will carry
on an immense building program in
Nolvlng hundreds of thousands of
workmen and extensive structure.
Tor the army throughout the coun
try. 1t will be under the immediate
direction of the chief OF staff and is
headed by Prof. A. ~ Talbot. of the
University of Illinois. president OF
the American Society of Civil Engin-
eers, r. Goodwin Rhett. of Charles
ton, S. c., president of the Chamber
OF Commerce of the United States is
another member.
Because of the hundreds of mill
lions of dollars involved the hoard
was asked to examine the present
form OF contract and. if necessary.
propose a new one. The board re-
ported:
Boards Report.
The form of contract permits
starting actual work. weeks and even
months before the details are COM
pletely worked out and delineated.
and permits the government to push
the job at any speed it may elect.
changing at will its scope and plans.
| but paying only what the work ac-
tually costs, plus a fee which is so
reasonable as to be above the reach
| o: fair-minded criticism"
This form of contract, so thor
oughly approved. is known as the
cost plus sliding scale OF fixed fee. ~
| IN which fixed fees to contractors
! range from seven per cent on con-
tracts OF 100000 or less down to as
low as one and three quarters per
cent on the very largest sums.
The fee, according to this form is
fixed when the contract is let. and if
the cost exceeds the estimate be-
! cause of higher labor and materials
prices, the contractor receives no adj
| d.tional compensation whatever. La
| hor and material prices will be sub
"Cost Plus" Contract.
Under other forms of the cost
! plus" contract. so widely attacked in
congress. it was possible for con-
tractor by running up labor charges
! and paying eXtravagant prices for
material to increase his fees accord
: ingly.
survey of the work to be done
/ by the new construction division in,
! dicates the magnitude of the govern
| ments preparations to push the war
| TO successful conclusion. There are
already under way in the United
| States eighty-five big jobs aggregat-
ing $205.OOO,000. There are in
| prospect now l2O more represent
ing S2780O0, 900. In addition there
ere 40 jobs for housing troops repre-
senting s390,OOO.OOO. while hospital
construction alone represents $lO.-
! 900, 900.
| The work in prospect includes
storage terminals at Charleston. s.
G., and 3S other points: signal corps
cantonments and aviation fields at
40 points powder loading plants and
ordance depots on the Atlantic sea-
board; housing facilities for ship
workers at 10 points; tuberculosis
hospitals at Denver. Colo, and
Azalea, ~ c.; a remount station at
Charleston. S. c.. mechanical repair
shops in Texas; three great Office
buildings in Washington in addition
to those under way; a hospital at
Fort Riley. Kan; an isolated hospit-
al at Tenafiy. ". j.; extensions of the
Springfield. Mass, arsenal. gas maxi
ing plants and gas shell filing plants
| al manu- na;nta