The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-06-04
ON TIN u E ID
~ from page one
COst-Plus Bias
Offered Bidders
On State Capitol

considered the fact that the legisla-
ture had put clause in the contract
allowing per cent differential in
favor of North Dakota materials and
a per cent differential in favor Of
North Dakota contractors.
The commission also realized that
under present conditions the new
capitol building should be construct
ed at the lowest cost possible to as
sist the taxpayers of the state, ac-
cording to Bangs.
With all these factors in view, the
commission decided upon the guar
anty cost form of contract which is
comparatively rare in North Dakota
building.
The first unusual feature of the
contract form is that it prevents the
contractor from making an exorbi-
tant profit on the construction. In
his proposal, the contractor is re-
quired to specify the exact amount of
profit he expects to realize on the
construction. After the building i;
completed. auditors of the state will
be permitted to make a complete
audit of his accounts and if the prof.
it on the building exceeds that spec
flied in the bid. the state will retain
Is per cent of the difference and the
remaining Is per cent will be award
ed to the contractor.
This last clause. Bangs explained
makes it to the advantage of the con-
tractor to build the building as eco
nomically as possible for the state
because his profit is increased in ac-
cordance with the amount of money
he saves the taxpayers
Protected BY Bonds
In case the contractor is unable to
! build the structure within the amount
OF the contract. the state is protected
by surety bonds. which will be re-
quired by the commission. and which
will take care of the inability of the
contractor to finish the building.
These provisions protect the state
and the taxpayers against unusual
profits and still allow the commission
/ to keep the building costs within tn
amount allowed by law tor the con-
struction. Bangs said.
| To protect North Dakota contrac-
! tors and sub contractors, the specifl-
cations for the building will require
/ the contractor to list the amount OF
each sub-contract. such as plastering
painting, steel work and other things
that go into the building. and the
name of the sub-contractor.
The general contractor also will bt
required to list all Of the firms fror
which he will contract building ma.
terial and the amount Of the build
ing contract. and where the materid
will be manufactured.
II the various items in the lowest
bid do not favor North Dakota sub
contractors and manufacturers, The
commission will have the right to ask
the contractor to substitute the NORTH
Dakota bid for the one he has entered
If the amount OF the North Dako-
ia bid Is within the differentia
allowed the North Dakota concerns
the commission will require the USE
of the North Dakota services.
Can Adjust Differences
To illustrate this point: The con-
| tIdCUOTS Will llSL Tile llTlIlS lTOUl WHICH
they intend to purchase brick of vari-
GUS types. They also will list the
price they will pay for the brick. II
the lowest bidder on the general con.
tract has specified brick made outside
of North Dakota. the commission has
the right to substitute the bid of the
North Dakota manufacturer and az.
just the difference.
This will apply to everything thai
goes into the building and the com.
mission will be enabled to favor
North Dakota contractors, North Da
kota dealers in material and NORTH
Dakota labor.
The commission also Is taking step,
to protect North Dakota labor in tn;
construction work and prevent til:
importation of labor from Other
states. Employment of men residing
in the state will be required in SO ia,
as possible and the differentials TO,
home contractors and materials pro.
tect North Dakotans in a much great.
er degree than other forms of contract
Bangs said.