Evening star., 1926-11-23
ABOLISH RED TAPE
0NU.S. CONTRACTS
Bureau Plan Places Federal
Construction on Basis
With Private Work.

A tangle of costly, traditional red
tape hedging about Federal construc.
ton projects has been slashed by
President Coolidge in an important de-
cision, which may save thousands of
dollars in the huge $165 100000 build
ing program now under way.
Estimating that in the past Fed
ersl bu ldings have cost rs per cent
more than the same work would have
cost a private builder, because of the
conditions surrounding Government
contracting" the Bureau of the
Budget announced that the President
has approved Il new form of construc-
ton contract designed to make
Federal contract a. prize to be won
rather than a pest to be avoided" 1t
will be effective January l.
NO longer will it be necessary,
said the bureau statement, for a con-
tractor to protect himself by making
gratuitOus add ton to the cost of the
contract to meet unreasonable require
ments of the Federal Government or
to cover obscure provisions in the con-
tract which may be subject to many
interpretations Federal construction
general conditions and stipulations. ir-
respective of the branch of the Gov
ernment making the contract or the
location of the project"
Compulsory January /.
The new standard form of construc-
ton contract also has several support
ing forms, such as invitation for
bids, form of bid, instructions to
bidders, a bid bond and performance
bond. After January l, use of the
new forms will be compulsory. They
may be used prior to that time if de-
sired.
"Heretofore," said the statement,
1.-The Federal Government has taken
both ends and the middle of all con-
tracts and contractural agreements
and has insisted upon such unreason-
able requirements that many reput-
able contractors have hesitated to ac-
cept Government construction con-
tracts. The new form of contract is
fair and equitable to both the Gov
ernnment and the contractor. The
contractor will not be charged with
damages for delay due to unforeseen
able causes beyond his control and
without his fault or negligence.
Heretofore under the old and varying
contract requirements contractors
have been penalized in cases where
work has been delayed through no
fault DC their own and where no pos
sible loss had been occasioned to the
Federal Government. This new con-
tract inaugurates a new era in Fed
eral building and recognizes the equity
of the honest contractor. He, is lett
free to deal with his sub-contractors
as his Judgment may dictate without
interference by Government officers.
Provision is also made for partial
payments as the work progresses to
save the contractors the expense of
carrying charges. BY simplifying
and standardiZing the language of the
contract, making clear the exact OBJ
legations of the contractor, disputes
and litigation will be avoided.
This contract. before it's final re-
vision. was tried out by the Coast
Guard of the Treasury Department in
letting contracts for a large number
Of boats to be used as rum chasers.
The contractors were so delighted
with their treatment under this con-
tract that they submitted much lower
prices in subsequent bids for the
building of additional ships.