Evening star., 1933-09-25
CONTRACTORS HIT
US. AWARD POLICY
Hail Public Work Progress,
but Cite Evils of Flat
Price Systems.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 25.-Con-
struction, which, with its ramif1cat1ons
like material manufacture, ranks second
only to agriculture in the Nations in
dustries, today hailed Secretary 1ckes'
statement that he had enough public
work projects before him to exhaust
the $4,000 ,00O 900 fund by January l.,
but at the same time condemned the
Governments contract award system.
Under the present conventional Gov
ernment bidding system, contracts are
awarded on submission of fiat price
for the completed work. This system,
1t is alleged, causes figuring of costs SO
closely that the contractor. to make q
profit, must sweat labor. substitute
cheaper materials or exploit subcon-
tractors
Slowness in launching public works
projects has retarded private building
Complications, not at once apparent,
however, have prevented Secretary
Ickes from getting his big program
tion naturally required the framing Of
codes and adjustment of wage scales,
which in turn unsettled building
material markets. Imitation talk only
aggravated the price situation.
Can Only Guess.
Some of the largest construction
companies here admit that they have
lost all touch with the materials market
, and that the prevailing uncertainty on
prices reduces the most careful esti-
| mates to little more than educated
guesSes." With the conversion of what
might otherwise be exceptional oppor-
| tunities into CANDLES. it appears that
many OF the larger local construction
| concerns will hesitate or fatty refuse
to participate in bidding for Govern
ment contracts.
Contractors declare that in recent
years the tendency has been away from
the lump-sum bid. They assert that
recognized as being worth fixed fees
separate from the actual costs of ma
terial and labor
John w. Harris of the Hegeman-
Harris Co., builders of the main unit
of Radio City here, of the Tribune
Tower in Chicago and of the American
Embassy Building in Paris, was one of
;; many who declared that the best hope
of bringing the Governments building
program in line with the other aims
of the recovery drive lies in at once
dlscarding the lump-sum bidding sys-
tenn in favor of the. fixed fee plan.
The price situation and the admin
istration policy of fair deal for labor.
according to Mr.. Harris. make it very
difficult to bid under the old system
and have resulted in delay on the pub
lie works program.
Urges Early Change.
Il find" continued Mr.. Harris, that
the current building situation in re-
spect to the price picture Of all build
ing costs Is more confused and uncer-
tain than at any time in my recollection
and that there is nothing In sight to
indicate the nkeliness of stabilization
for considerable time to come. Under
these conditions it seems imperative, if
the tagging public works program Is to
play part in. recovery, that Secretary
1ckes adopt the fixed fee plan Of han
ding most of the new contracts instead
OF the antiquated lump-sum system of
the past
Although construction awards last
month surpassed any month for the
year to date, the eight-month total of
$620.937 500 in the 81 States east of
the Rockies, according to F. w. Dodge
Corporation, compares with 1925, 1886 500
for the same 1882 period The firm has
estimated construction contracts for
the present year around $1.1O0, 900 900
against 81 ,351 1853, 700 in 1882. Builders
cite the difficulty of obtaining mortgage
money as one of the hindrances to pri-
vate building, especially of residences
Copyright. 1880