Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-30
Increase Accounted for by
Contractors Policy of
Adding 10 Per Cent.
RECENT LABOR DISPUTE
INSPIRES NEW METHOD
Work Will Be Awarded to Lowest
Bidder in Future Building
Projects.

The policy of, the Treasury Depart
ment not to subdivide mechanical and
structural construction contracts. an
nounced this week with the end of the
controversy, which has held up work on
the addition to the Government Print
ing Office for two months, is expected
TO add 10 per cent TO the cost of me-
chanical construction on the Govern
ment's s300000.000 building program.
The anticipated inreased cost is &C
counted for by the practice of general
contractors in adding 10 per cent to the
estimated cost as protection against
possible loss in dealing with sub-con-
tractors. Where a firm would bid $50
600 to install mechanical fixtures. a
general contractor would bid $4,000,
with view to utilizing the $4,000 as a
protection against any wage or other
questions that might arise between him
and the mechanical workers with whom
he would negotiate.
Heretofore structural and mechanical
work on projects costing more than
$4,000 have been bid for separately.
Henceforth the Treasury will not sub
divide this work, but will enter into
agreements with the lowest bidding
general contractor for both mechanical
dIlO STRUCTURAL CONSTRUCTION.
Plan to Eliminate Trouble.
At the same time. the Treasury has
taken steps to eliminate the possibility
of such misunderstanding as that
which tied up work on the Government
Printing Office addition.
The Treasury does not recognize
union labor or non-union labor, but
contracts with the lowest bidder. The
departments opinion is that in holding
one contracting firm responsible in the
future for both structural and mechan-
ical work the possibilities of difficulties
between labor elements will be mini
mixed and tie-ups on construction work
made correspondingly infrequent.
The new policy grew out of difficult
ties here and in Cleveland which de-
veloped out of conflicts between union
and non-union labor, conflicts in which
the Treasury Department had no in
terest.
On the Government Printing Office
addition a company employing union
labor had the contract for the struc-
tural work. When company having
the contract for the mechanical work
sent non-union labor to the Job the
union labor refused to continue, and
it was two months before agreements
were affected and the work resumed.
similar situation arose in Cleveland,
with the result that necessary Govern
ment work suffered delays.
Allow for Increased Cost.
The increased cost OF 10 per cent for
mechanical construction which the
Treasury is willing to meet in its work
will not result in an added cost so far
as the whole building program is con-
cerned. Congress has appropriated
specific sums for the construction of
each unit in the program. and the
financial result of the new policy will
be that plans for each building will be
designed with the 10 per cent extra
mechanical cost in mind.
Companies engaged primarily in in
stalling mechanical fixtures that here
tofore have dealt directly with the Gov
eminent hencefortb will deal with gen.
eral contractors and will obtain pay
ment from them. The prevailing con-
tract prices for mechanical work are
not expected to be influenced by the
new policy.
The Treasury Department has con-
sidered the subject. however. of possible
difficulties arising should a general con-
tractor fail in any given instance to
make good his individual contract with
the mechanical construction company.
In such an event. the company would
have no recourse to the Government
and sole responsibility would rest upon
the general contractor.