Registry No. 1616—78 NATIONAL RECOVERY ADMINISTRATION PROPOSED CODE OF FAIR COMPETITION FOR THE WATER WELL DRILLERS INDUSTRY AS SUBMITTED ON AUGUST 30, 1933 UNIV. OF_FL LIB. ■L MEMBER WE DO OUR PART The Code for the Water Well Drillers Industry in its present form merely reflects the proposal of the above-mentioned industry, and none of the provisions contained therein are to be regarded as having received the approval of the National Recovery Administration as applying to this industry UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washington, D.C. --------_ Price 5 cents Submitted by AMERICAN ASSOCIATION OF WATER WELL DRILLERS (II) INDUSTRIAL RECOVERY CODE AND CODE OF FAIR COMPETITION FOR THE AMERICAN ASSOCIATION OF WATER WELL DRILLERS The American Association of Water Well Drillers, a national trade association representative of water well drilling contractors throughout the United States for several years last past, pursuant to the purpose of the water well drilling contractors to cooperate with the President of the United States in effectuating the policy declared in Title I of the National Industrial Recovery Act, does hereby recommend and submit for approval pursuant to Section 3 of said title the following Code of Fair Competition and plan for its administration for all work insofar as it pertains to water well drilling contractors. Article I — Declaration of Policy In order to induce and maintain the united action of labor and management under adequate governmental or private sanctions and supervision, to eliminate unfair competitive practice and to advance the public interest, to reduce and relieve unemployment, to improve standards of labor and living and otherwise rehabilitate the water well drilling industry and effectuate the policies set forth in the Xational Industrial Recovery Act, this code of fair competition governing the furnishing of water well drilling services by the water well drilling industry is adopted. Article II — Definition of " Water Well Drilling Contractor " When used in this code, the term " Water Well Drilling Contrac- tor " is any person, partnership, compan} 7 , association, corporation, or agency which contracts to supervise, coordinate, and/or execute the work of drilling, boring, coring, or construction of test holes and/or water wells other than for oil or gas in any way whatsoever. Any person, firm, partnership, agency, company, association, or cor- poration engaged in the drilling, boring, coring, or construction of test holes and/or water wells other than for oil or gas shall be subject to compliance with these articles and code, whether by formal contract or otherwise. Article III — Trade Association (a) This national trade association of water well drilling contrac- tors affirms that it imposes no inequitable restrictions on admission to membership therein, and is truly representative as a national trade association of the water well drilling industry. (b) This code will not promote monopolies or eliminate or oppress small enterprises and will not operate to discriminate against them, 9112 no. 161&-78 33 (1) and will tend to effectuate the policy of said Title I. It is expressly recognized that the President of the United States may, as a con- dition of his approval of this code, impose such conditions (including requirements for the making of reports and the keeping of accounts) as may be expedient in the furtherance of the public interest for the protection of consumers, competitors, employees, and others, and may provide such exceptions to and exceptions from the provisions of this code as the President of the United States in his discretion deems necessary to effectuate the policy herein declared. Article IV — Labor Relations Section 1. Labor Conditions. — In accordance with the require- ments of the National Industrial Recovery Act : (a) Employees shall have the right to organize and bargain collec- tively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. (b) No employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing. (c) Employees shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment, ap- proved or prescribed by the President. Sec. 2. Minimum Wages. — (a) A water- well drilling contractor shall pay wages not less than the minimum rates which shall be at the rate of thirty-five cents per hour up to two years' experience, and not less than at the rate of forty cents per hour for all men employed at this work having more than two years' experience, except the states of Maryland, Virginia, North Carolina, South Carolina, West Virginia, Tennessee, Georgia, Florida, Alabama, and Mis- sissippi, which shall be at the rate of thirty cents per hour up to two years' experience, and not less than at the rate of thirty-five cents per hour for all men employed at this work having more than two years' experience. (b) A water- well drilling contractor shall make payment of all wages as due in lawful currency of the United States, or its equiva- lent in the form of bankable check. The water-well drilling con- tractor or his agents shall accept no rebates, directly or indirectly, on such wages, nor give anything of value or extend favors to any person for the purpose of influencing rates of wages or the working conditions of his employees. (c) A water well-drilling contractor shall not resort to the use of what is known to the trade as " piecework " or similar contractual relationship in his employment of labor, when tending to defeat the spirit and purpose of Section 7A-3 of Title I of the National Indus- trial Recovery Act. (d) No contract or agreement shall be made by a water well-drill- ing contractor with a subcontractor or other agency, which requires the services of mechanics or labor on the site of the work, unless the established minimum rates of wages are paid. 3 Sec. 3. Maximum Hours. — (a) A water well-drilling contractor shall not permit nor require any individual directly employed on an}' water well-drilling, boring, or well-construction project to work more than a maximum of forty-eight hours a week and eight hours a day except in cases of emergency requiring the protection of life or property, and in no case more than one hundred hours extra in any six months' period, except those in executive, administrative, and supervisory positions, providing they are not engaged in the actual drilling operations and except as a lesser number of hours is re- quired by Title II of the National Recovery Act relating to public works and construction projects thereunder. Nothing herein shall be construed as preventing voluntary agree- ments establishing a lesser maximum number of hours as provided in the National Industrial Recovery Act. Article V — Trade Practices Section 1. Submitting Bids. — (a) A water well drilling con- tractor, in submitting bids for the construction or improvement of either public or private works, shall be governed by the following regulations necessary to insure fair competition, since it is essential that whenever contracts are to be let by competitive bidding, terms of the competition shall be such as to insure parity of standing to all bidders. (b) All bids shall be in writing signed by the bidder. (c) A water well drilling contractor shall not be required to ac- cept the award of a contract after fifteen (15) days after the date of opening bids. (d) A water well drilling contractor shall not be held responsible or penalized for deficiencies in or omissions from the plans and/or specifications prepared by others and upon which the contract is based. Sec. 2. Unfair Practices. — (a) A water well drilling contractor shall not engage in the unfair practice known to the industry as " bid peddling " or any similar unfair practice. (b) A water well drilling contractor shall refuse to deal with any person or persons who have not complied with the code of fair competition herein defined. (c) A water well drilling contractor shall not take advantage in his bid of any special privileges, favors, or understandings had with him by persons in control of the award. This, however, shall not prevent any such competitor, even though not the lowest bidder, from taking such contract, providing the award is made at his original competitive bid price, nor shall it prevent any water well drilling contractor from accepting the award of such contract at any price where no competitive bids are taken. (d) A water well drilling contractor shall not revise his bid after bids have been opened in order to improve his position with the owner, except he be the low bidder. Bona fide errors dis- covered after the opening of bids may be grounds for withdrawal of bid. (e) A water well drilling contractor shall not encourage or in- duce the owner or his agent to reject bids and readvertise in order that he may revise his original offer. (f) A water well drilling contractor shall nor bid upon a project which bids have previously been invited, received, and opened at any time within ninety days from the date of the previous opening of bids next thereafter, except there be substantial changes of the plans and specifications. (g) A water well drilling contractor shall not knowingly submit a bid nor accept a contract which does not include all direct and in- direct costs, and he shall maintain and keep on file his original estimates supporting his bid or contract, for one year after comple- tion. (h) It shall be an unfair trade practice to sell or offer to sell any or all services connected with the drilling, boring, coring, or con- struction of test holes and/or water wells other than for oil or gas, which is less than the individual's, partnership's, firm's, or corpora- tion's costs, as determined by the National Industrial Control Com- mittee's standard cost accounting system. (i) A water well drilling contractor shall not give or accept rebates, refunds, allowances, unearned discounts, or special services to or from subcontractors, material vendors, or others which are not extended under like terms and conditions to other purchasers of material or services of equal credit rating. (j) A water well drilling contractor shall not permit subcon- tractors or material vendors on a specific contract to finance or guarantee his accounts. (k) A water well drilling contractor shall not convey to any sub- contractor or material vendor any substantial information prior to the award of the particular subcontract relating to the bid of any other subcontractor or material vendor who has made a bid to him or to any other water well drilling contractor, nor shall he mislead or deceive any subcontractor or material vendor as to the amounts and conditions of other bids for the purpose of obtaining a lower bid. Article VI — Water Well Drilling Contractors Section 1. Qualifications. — A water well drilling contractor shall be properly qualified by experience, equipment, and tools to bid upon and properly execute the contract which he undertakes. Sec. 2. Accounting and Reports. — A water well drilling contractor shall maintain a system of making reports, and shall keep adequate accounts of all moneys received and disbursed as provided for and/or approved by the National Industrial Control Committee for Water Well Drilling Contractors. Sec. 3. Contractual Agreements. — The following bases of con- tractual agreements are recognized as fair trade practices: cost of the work plus a fee, unit price, lump sum to be made up from unit prices openly stated on bid form and in contract and to be arrived at on the basis of unit prices as follows: (a) price for drilling; (b) price for pipe; (c) price for screen; (d) price for pump; (e) price for motor or other power; (f) developing and testing per hour; (g) incidentals to be definitely priced separately; (h) guarantee for workmanship and materials for one year or less. Sec. 4. Payments. — A water well drilling contractor shall demand and insist upon receiving the contract payments as they become due in lawful money of the United States or its equivalent, as pro- vided by the contract, and he shall not waive his right to receive any part of such contract payments, nor shall he return to the owner or his agent any money or render him any service or give him any- thing of value not required by the contract. Sec. 5. Surety. — A prequalified water well drilling contractor who has met the necessary qualifications entitling him to the work, but who is unable, due to conditions beyond his control, to obtain the proper surety required by the contract may agree with the owner and the Regional Control Committee for Water Well Drilling Con- tractors upon a suretyship of some other nature. Sec. 6. Disputes. — When arbitration as a method of settling dis- puted matters is agreed upon, the rules of procedure as established by the American Arbitration Association shall govern, except as otherwise required by law. Payment shall not be withheld from the parties affected exceeding that sufficient to cover the amounts in dispute. Sec. 7. General Requirements. — A water well drilling contractor, in his relations with subcontractors, material vendors, and other shall require such parties to adhere to the principles enunciated by this code of fair competition. Article VII — Correlating Interests To effectuate the purposes and the policy of the National Indus- trial Recovery Act and this code of fair competition for water well drilling contractors it is essential and requisite that, in a water well drilling contract, all interested parties and participants, or their agents, be obligated to adhere and conform to the basic principles regulating it. Therefore, all such persons shall have correlative responsibility to adhere and conform to the basic principles of the National Industrial Recovery Act and this code of fair competition for water well drilling contractors. Article VIII — Rules and Regulations Section 1. The President may from time to time cancel or modify any order, approval, license, rule, or regulation issued under this title Sec. 2. Administrative Committee. — (a) To effectuate the purpose of the Code and provide for administrative control within the indus- try, there shall be established a " National Industrial Control Com- mittee for Water Well Drilling Contractors ", consisting of one member from each State, Territory, or Possession that operates under the N.R.A. In addition to these members there may be three members selected by the N.R.A. who shall be advisory only and shall not vote. There shall be three officers, the President, Secretary of Committees, and the Secretary of the American Association of Water Well Drillers — the President of the American Association of Water Well Drillers as Chairman, the Secretary of Committees of the American Association of Water Well Drillers as Vice Chair- man, the Secretary of the American Association of Water Well Drillers as Corresponding Secretary. (b) This National Industrial Control Committee shall be elected within three months after the approval and signing of this code by the President of the United States. The representatives from each State, Territory, or Possession shall each be selected by a truly repre- sentative group of water well drilling contractors of their State, UNIVERSITY OF FLORIDA 6 3 1262 08850 2843 Territory, or Possession and it shall be their individual duty to select their representative in time to comply with this act. This representative must be a drilling contractor who has been in the well contracting business for five years last past or longer. (c) To effectuate immediately the purpose of the Code and provide for immediate administrative control within the industry, there is established a " Temporary National Industrial Control Committee for Water Well Drilling Contractors ", as elected by water well drilling contractors representing the American Association of Water Well Drillers, the different state associations, and nonmember groups. The temporary National Industrial Control Committee shall func- tion as the Administrative Committee until the permanent National Industrial Control Committee is elected as herein provided. Sec. 3. Regional Committees. — The representative from the State, Territory, or Possession elected to the National Industrial Control Committee shall be Chairman of his State or Regional committee and it shall be his duty to see that there is a committee of four addi- tional members elected from his district, making a committee of five in all. Two of these members are to be what is known as small drilling contractors and doing the smaller work, and two of the members are to be selected from what is known as large drilling contractors doing the heavier work, or more extensive contracting. Sec. 4. (a) National Control Committee. — The National Indus- trial Control Committee for Water Well Drilling Contractors shall have full authority to make all needful rules and regulations for the administration and enforcement of the provisions of this Code, shall recommend to the President any supplements or revisions to this Code that may be necessary, and upon its own initiative, shall make such inquiry and investigation and take such action as may be neces- sary under the operation of this Code. This committee shall have full authority to establish subordinate State, local, and regional committees and prescribe such duties, rules, and regulations as are deemed necessary to carry out the purposes of this Code and the National Industrial Recovery Act. (b) Amendments or revisions may be proposed to the President by water well drilling contractors, acting through their national trade association, designated as the American Association of Water Well Drillers. Sec. 5. Administration Expense. — All water well drilling con- tractors, as defined, who wish to receive the benefits of this Code, shall bear their proportionate share of the expense of the prepara- tion and administration of this code of air competition under such rules and regulations as may be approved by the President of the United States. Sec. 6. Effective Date. — (a) This Code shall be effective when approved by the President of the United States. (b) This Code shall be applicable only to all construction work undertaken pursuant to contracts entered into or otherwise com- menced after such approval date. Respectfully submitted. American Association of Water Well Drillers, By T. W. Thorp, Sec'y of Committees. o