Hearings

STATE LAWS REQUIRING SEPARATE SPECIFICATIONS FOR MECHANICAL EQUIPMENT IN PUBLIC BUILDINGS OF PENNSYLVANIA, NEW JERSEY, NEW YORK, NORTH CAROLINA

(Compiled by the Joint Legislative Committee of the Heating and Piping Contractors Pennsylvania Association, Pennsylvania State Association of Master Plumbers, Pennsylvania State Association of Electrical Contractors and Dealers)

PENNSYLVANIA

The Pennsylvania statute was passed in 1913 and is entitled:

AN ACT Regulating the letting of certain contracts for the erection, construction, and alteration of public buildings

SECTION 1. Be it enacted by the Senate and House of Representatives of the Commonwealth of Pennsylvania in General Assembly met, and it is hereby enacted by the authority of the same, That hereafter in the preparation of specifications for the erection, construction, and alteration of any public building when the entire cost of such work shall exceed one thousand dollars it shall be the duty of the architect, engineer, or other person preparing such specifications to prepare separate specifications for the plumbing, heating, ventilating, and electrical work, and it shall be the duty of the person or persons authorized to enter into contracts for the erection, construction, or alteration of such public buildings to receive separate bids upon each of the said branches of work and to award the contract for the same to the lowest responsible bidder for each of said branches.

SEC. 2. All acts or parts of acts inconsistent herewith are hereby repealed.

NEW JERSEY

The New Jersey statute is chapter 95, Laws of 1915, entitled:

AN ACT To regulate the preparation of plans and specifications and the awarding of contracts for the erection, construction, and alteration of public buildings in this State

Be it enacted by the Senate and General Assembly of the State of New Jersey: 1. Hereafter in the preparation of plans and specifications for the erection, construction, alteration, or repair of any public buildings in this State, whether the same is to be erected, altered, or repaired by the State or any political subdivision thereof, when the entire cost of such work will exceed one thousand dollars in amount, it shall be the duty of the architect, engineer, or other person preparing such plans and specifications, to prepare separate plans and specifications for the plumbing and gas fitting, and all work kindred thereto and of the steam and hot-water heating and ventilating apparatus, steam-power plants and work kindred thereto, and electrical work; and it shall be the further duty of the board or body, person or persons authorized by law to award contracts for the erection, construction, alteration, or repair of any such public building, to advertise for, in the manner provided by law, and to receive separate bids for each of said branches of work, and to award contracts for the same to the lowest responsible bidder for each of such branches, respectively. 2. All acts or parts of acts inconsistent herewith are hereby repealed, and this act shall take effect immediately.

A statement on the reverse side of the bill introduced in the legislature, reads as follows:

The object of this bill is to make it mandatory, in preparing plans and specifications for construction, alteration, or repair of public buildings, where same is to cost more than one thousand dollars, to prepare separate plans and specifications for plumbing and gas fitting and kindred work, steam and hotwater heating and ventilating apparatus, steam power plants and kindred work, and electrical work, and to advertise for separate bids on such work. This conforms to existing laws in a number of other States, including New York and Pennsylvania."

NEW YORK

The New York statute is chapter 469, Laws of 1921, entitled:

AN ACT To amend the general municipal law and the State finance law, in relation to the awarding of contracts

The people of the State of New York, represented in senate and assembly, do enact as follows:

SECTION 1. Article five of chapter twenty-nine of the laws of nineteen hundred and nine, entitled "An act relating to municipal corporation, constituting chapter twenty-four of the consolidated laws," is hereby amended by adding at the end a new section, to be section eighty-eight, to read as follows:

"88. Separate specifications for certain contract work: Every officer, board, department, cominission or commissions charged with the duty of preparing specifications or awarding or entering into contracts for the erection, construction, or alteration of buildings in any county or city, or the borough of any city, when the entire cost of such work shall exceed twenty-five thousand dollars, must have prepared separate specifications for each of the following branches of work to be performed:

"1. Plumbing and gas fitting.

"2. Steam heating, hot water and ventilating apparatus.

"Such specifications must be so drawn as to permit separate and independent bidding upon each of the classes of work enumerated in the above subdivisions. All contracts hereafter awarded by any county, city, or borough, or a department, board, commission, or commissiner, or officer thereof, for the erection, construction, or alteration of buildings or any part thereof, shall award the respective work specified in the above subdivisions separately to responsible and reliable persons, firms, or corporations. Nothing in this section shall be construed to prevent the authorities in charge of any county or municipal building from performing any such branches of work by or through their regular employees, or in the case of public institutions, by the inmates thereof." 2. Article two of chapter fifty-eight of the laws of nineteen hundred and nine, entitled "An act relating to State finance, constituting chapter fifty-six of the consolidated laws," is hereby amended by adding at the end thereof a new section, to be section fifty, to read as follows:

"50. Separate specifications for contract work for the State: Every officer, board, department, commission, or commissions charged with the duty of preparing specifications or awarding or entering into contracts for the erection, construction, or alteration of buildings for the State, when the entire cost of such work shall exceed twenty-five thousand dollars, must have prepared separate specifications for each of the following branches of work to be performed: "1. Plumbing and gas fitting.

"2. Steam heating, hot water and ventilating apparatus.

3. This act shall take effect September first, nineteen hundred and twenty-one.

NORTH CAROLINA

The North Carolina statute is Act 624, Laws of 1925, entitled:

AN ACT To require separate specifications for certain contract work

The General Assembly of North Carolina do enact:

SECTION 1. That every officer, board, department, commission, or commissions. charged with the duty of preparing specifications or awarding or entering into contract for the erection, construction, or alteration of buildings in any county or city, when the entire cost of such work shall exceed ten thousand dollars,

must have prepared separate specifications for each of the following branches of work to be performed:

1. Heating and ventilating.

2. Plumbing and gas fitting.

All such specifications must be so drawn as to permit separate and independent bidding upon each of the classes of work enumerated in the above subdivisions. All contracts hereafter awarded by any county, or city, or a department, board, commission, or commissioners, or officer thereof, for the erection construction or alteration of buildings or any part thereof, shall award respective work specified in the above subdivisions separately to responsible persons, firms, or corporations regularly engaged in their respective line of work. SEC. 2. That every officer, board, department, commission, or commissions charged with the duty of preparing specifications or awarding or entering into contract for the erection, construction, or alteration of buildings for the State, when the entire cost of such work shall exceed ten thousand dollars, must have prepared separate specifications for each of the following branches of work to be performed.

1. Heating and ventilating.

2. Plumbing and gas fitting.

SEC. 3. This act shall be in full force and effect from and after its ratification. In the general assembly read three times and ratified this the 6th day of March, A. D. 1925.

RESOLUTION ADOPTED BY THE AMERICAN INSTITUTE OF ARCHITECTS IN CONVENTION AT NEW ORLEANS, LA., DECEMBER 13, 1913

Resolved, That the American Institute of Architects, in convention assembled, recommends to the members of our profession the adoption of the practice of direct letting of contracts for mechanical equipment, such as heating apparatus, plumbing and electrical equipment. This recommendation is based on the conviction that direct letting of contracts, as compared with subletting through general contractors, affords the architect more certain selection of competent contractors and more efficient control of execution of work, and thereby insures a higher standard of work, and, at the same time, serves more equitably the financial interests of both owner and contractor.

Senator BARBOUR. Mr. Fitts, you spoke of a savings to the Government by this method. Tell us briefly what you mean, and give some examples of how a saving might be effected.

Mr. FITTS. I have made a survey of some work that was left in the New York district, where the work was close at hand, on heating alone. I should like the privilege of giving these jobs in a way that there might be no misfortune happen to the men who have given me a good bit of the information in confidence.

Taking up job A, the lowest bid that the general contractor had at the time when he submitted his bid to the Government was $175,000. But he bought that job later on from a heating contractor for $150,000, which was a saving to him of 16% per cent. Job B was one on which the lowest bid by the general contractor was $12,000, and afterwards he bought that job at $10,000, which was a saving to him of 20 per cent.

Job C was let to a general contractor for the lowest bid at $14,200, and he bought it afterwards for $13,000, a saving of 9 per cent.

Job D was let to the general contractor at the lowest bid of $26,000, and he bought it later on at $22,000, representing a saving of 18 per cent.

Job E was let to the lowest bid by general contractor at $45,000, and he bought it later on for $40,000, representing a saving to him of 1212 per cent.

Job F was let to the lowest bidder, a general contractor, at $38,000, and he bought it later on for $31,000, representing a saving to him of 22 per cent.

Now, these savings were accomplished not before the submitting of bids to the Government by the general contractors but after their bids had been submitted.

The CHAIRMAN. Are these all recent cases?

Mr. FITTs. Yes, sir. These cases have occurred within the last six or seven months.

Senator BARBOUR. And these examples, as I understand, are specific instances which you know of your own knowledge to be bona fide?

Mr. FITTS. Yes, sir; they are. And they occurred within the metropolitan district of New York City. I can not speak from my own knowledge of situations in other trades in other localities, but judging by the way bids are being taken I think the same thing would hold true.

Senator BARBOUR. Now, Mr. Fitts, would the Government be able to obtain as low a price as you show the general contractor got on these jobs by taking bids direct?

Mr. FITTS. I think it would obtain as low or a lower price. For instance, it is difficult always to know in advance what the eredit situation will be. If we could bid direct to the Government we could eliminate the factor of safety that has to be put into these bids, until they see who gets the general contract. Another thing, you would get lots of competition.

I might explain that when the law was first enacted in the State of New York four or five contractors would bid on a job. Now, in the heating trade we find 14 or 20 or 25 bidding. So there is lots of competition, and they know that there is no chance for any jockeying or backing and filling, and so they put their bids in with the best price the first time and the Government buys it at that price.

Senator BARBOUR. In other words, you feel that in addition to other advantages the Government would get more responsible contractors.

Mr. FITTS. I think it would, because there are a lot of contractors who will not be annoyed with all the jockeying and backing and filling that goes with this holding auction after the job is let.

Senator BARBOUR. Would this new system be fair to the smaller contractor who is just starting in the business?

Mr. FITTS. We think it would be eminently fair to the smaller contractors. The three associations have about 90 per cent of their membership amongst the smaller contractors, and we are interested in them and are protecting them, and I will say that we have resolutions adopted by all three of these associations on the floor of their conventions, and also by the Electragists International, and these small contractors are asking for it.

Senator BARBOUR. With the chairman's permission, I should like to have those resolutions added to the data that is being furnished. The CHAIRMAN. They may be made a part of our record. (The resolutions are as follows:)

RESOLUTION ADOPTED BY THE HEATING AND PIPING CONTRACTORS NATIONAL

ASSOCIATION

Resolved, That the Heating and Piping Contractors National Association, at its forty-second annual convention held in the Kentucky Hotel, Louisville, Ky., May 6 to 9, 1931, records itself as believing not only in the desirability, but that the best interests of the public will be conserved by the separation of the power, heating, ventilating, plumbing, and electrical contracts from the general contract on all public work; and be it further

Resolved, That all specifications sent out by the Federal Government, State, or other public works departments, contain a prequalification clause based upon the financial standing and experience that will guarantee satisfactory performance of the work; and be it further

Resolved, That the president of this association be empowered to appoint a committee of three, with power to act, this committee to convene some time in June, 1931, and cooperate with similar committees appointed by the Electrical Guild of North America and the National Association of Master Plumbers.

RESOLUTION ADOPTED BY THE NATIONAL ASSOCIATION OF MASTER PLUMBERS

Resolved, That the National Association of Master Plumbers at its fortyninth annual convention held in Milwaukee, June 22 to 26, 1931, record itself as believing not only in the desirability, but that the best interests of the public will be conserved by the separation of plumbing, heating, ventilating. and electrical contracts from the general contract on all public work; and be it further

Resolved, That the president of this association be empowered to appoint a committee of three with power to act, this committee to convene in the near future and cooperate with similar committees appointed by the Electrical Guild of North America and the Heating and Piping Contractors National Association.

RESOLUTION ADOPTED AT THE ANNUAL MEETING OF THE ELECTRICAL GUILD OF NORTH AMERICA

Resolved, That the Electrical Guild of North America, at its annual meeting held in the Wardman Park Hotel, Washington, D. C., April 20-21, 1931, records itself as believing not only in the desirability, but that the best interests of the public will be conserved by the separation of the power, heating, ventilating, plumbing, and electrical contracts from the general contract on all public work; and be it further

Resolved, That all specifications sent out by the Federal Government, State, or other public-works departments, contain a prequalification clause based upon the financial standing and experience that will guarantee satisfactory performance of the work; and, be it further

Resolved, That the president of this association be empowered to appoint a committee of three, with power to act, this committee to convene some time in June, 1931, and cooperate with similar committees appointed by the Heating and Piping Contractors National Association and the National Association of Master Plumbers.

RESOLUTION ADOPTED OCTOBER 7, 1931, BY THE ASSOCIATION OF ELECTRAGISTS INTERNATIONAL

Whereas the Federal Government appropriates annually many millions of dollars of the taxpayers' money for Government building projects, and is seeking thereby in the present period of depression to relieve both business and unemployment; and

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