Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-15
CONTRACTOR CODE
OF ETHICS PLANNED
Builders Desire to Remove
Unfair Practices and
Politics in Industry.
BY J. C. ROYLE.

BY J. c. ROYLE.
Contractors and builders are APP
pearing to take politics and unfair
practices out of construction. With
hundreds of millions of dollars worth
Of Federal, State, county and munich
pal contracts to be let, they are de-
manding that the low legitimate bid
through disqualification" of bidders
on ali public works.
In nearly all instances there already
are statutes and regulations which pro-
vide that the contracts for which bids
are asked shall go to the lowest re-
sponsible bidder" The trouble is, who
is to determine responsibility and how?
The construction men and their guar
antors hope to eliminate all questions
by having the responsibility of bidders
determined in advance, before a bid Is
requested or opened.
AS the first move in that direction
the American Association of State
Highway Oficials and the Associated
General Contractors of America have
formed joint committee whose activi-
ties will center in disqualification.
The surety division of the affiliated bu-
reau of the Associated General Con-
tractors, comprising IS surety COM
panies, which put up go per cent Of
the surety bonds on public works, also
has named committee. The two COM
mittees have gotten together and are
now engaged in drafting bill which
will be finished by January l.
Terms of Measure.
This measure will be submitted by
State highway officials to the various
State Legislatures. It will authorize
the use of prequalif1cation system in
letting contracts for public work in
each State. The measure in amended
bidders on Federal jobs.
The measure will also provide for
the compiling of record of each con-
tractor engaged in public works con-
struction. This data will be a matter
of permanent record and will be added
to from time to time, as new work and
changed conditions warrant. 1t will
establish the skill, responsibility and
integrity of each bidder who could be
declare it will assure that in future
cases the actual low bidder will get
the work. They say it will be of in
estimable benefit to the responsible
contractor, for it would permit hackers
of private building programs to en-
gage a contractor on the bases of past
performance, with responsibility and
OHcial approval has been given the
disqualification of bidders on Federal
highway work by the Bureau of Pub
lie Roads. Thomas H. Macdonald,
chief of the bureau, explained that the
bureau could not insist on the prequal
flcation plan unless the States approved
it, since the regulation of highway con-
struction paid for with Federal aid is
vested by law in the States to which the
aid is extended. But he said he IA
vored using the plan on all work en-
reau and that this would serve as an
example to the remainder of the
country.
In this connection Mr. Macdonald
says: The experience of the Bureau of
Public Roads in disqualification of bid
ders for forest and park road contracts
has been eminently satisfactory. In
the last year, of the 1913 contractors
who applied, 189 were qualified by this
bureau. OF those who bid on the SO
projects, only one failed completely to
carry out his work and only one other
has shown signs of inability.
Policy of Bureau.
1.-THE bureau has pursued what we
feel has been a reasonable course in
disqualification. We believe in the prin-
ciple that no contractor capable of
performing a particular piece of work
Should be excluded by setting UP con-
ditions which will prevent him from
bidding on the job. but neither do we
believe it is fair to the contractors on
whom we must depend to accomplish
the work to meet the competition OF
absolutely unqualified contractors.
THE ability to furnish a contractor
bond appears to carry with it the ability
to finance and execute a contract.
Nothing could be farther from the
truth. I would much prefer to rely
on disqualification on contracting or
CARNATIONS properly to carry on the
work than to rely on any form of bond
Copyright; 1929