Document zz0EGgmoEN3Qa0Lmmpd0D7kda

Published Monthly by Texas Branch, A. G. C. Lone Star instruct The Construction Magazine of Texas S:. Of Interest in This Issue 44The A. G. C. Standard Proposal Form," by C. S. Lambie "Don't be Stam peded by Low Prices - Figure a Profit." by Nieli Singleton ^ "Many Problems Discus sed at Frisco Convention*' * 4iWhat is tbe Future of High way Contracting?" bv Alan J. Parrish 44Legal Deci sion Regarding Withdrawing Bid In Error." JktR.hikfnty end foynw/nlift* FEBRUARY, 1931 Volume VIII, Number 2 Lone Star (instructor _f| Jftasv The Construction Magazine of Texas E. A. BAUGH, Editor Conventions I always easy to say that the last conention was "the best ever." But seldom easy to prove the statement as it is in ;-of the Twelfth Annual Meeting of the ;C., held last month in San Francisco, zation problems were relegated to the construction work was given the the first time in years contractors, tober with their architects and engineer guest kers, stood up in public and spoke plain brds. The evils of incompetant design, overpansion by contractors, unfair contracts, unTcal tactics and unsound business methods vere hung where we could look them over. ,:V'vv f the applause accorded the frank remarks Ighe speakers was a true indication, it would a all the listeners agreed heartily with what j^s'aid. Now we are home again, amid familt> surroundings, faced once more with the osaic problems of making a living. How j*ch of what wTas said at San Francisco will ^&ck and take root--how much will be passed [gvith a shrug of the shoulders and the re- `It sounded nice but it won't get me a he sad part of all such gatherings, whether j.a contractors' convention or a football rally, is that after the first blush of enthuJgt.is gone and the handclapping subsides gtjgain become cold and unresponsive. Conhons serve to keep our problems before us gesults depend upon the individual, his willingness and ability to put into action the ideas he applauded so loudly. Those who attended the convention arefaced with the duty of carrying back to their fellow contractors in all parts of the country the enthusiasm which they acquired. Those who stayed at home have an opportunity to accomplish much good by lending a receptive ear to those who returned imbued with the de sire to rectify conditions. Then let us all put into practice the things which we all agree should be done. Perhaps the most encouraging aspect of the convention was the evidence that the construc tion world is acquiring an industrial con sciousness. Individual men and individual or ganizations each have their limitations in ac complishing the work to he done. Much new thought was developed along these lines. Let us hope that the leavening of the few who were in San Francisco will not be entirely lost when it is spread throughout the construction world. It is easy to talk. It is easy to preach. But action is needed, and that is more difficult. Your association is striving all the time to make things easier for you. Give it your active support. Your service on a committee may be the one final impulse which will put us over the hump. The A. G. C. will be whatever you make of it by your personal support and ef forts. In the words of our new' president. "Tf A. G. C. can't help you, it needs your help to make it help you." Profits can't be based on such an uncertain element as Luck. LOS'F STAR CONSTRUCTOR FOR FEBRUARY, ?Page THE CENTER FOR AMERICAN HISTORY TtjBUIOyEKSTy WWASATAUSIBi t him appear more in line, we nil would maintain the price level at which the work should be bid, we would stand a chance of receiving the contract hy mak ing tlie extremely low bidder be much further out of line than he would be it we put our margin of proht lower than it should be. Let us all take hope in Mr. Babson's forecast. Let us maintain a price level for our work which is consistent with good business, and which is nrcsssarr for ,i[ood workmanship. Let us name our prices so that we can afford to pay the material man and the sub-contractor their rightful profits. The measure of the success of a companv or of a man will be in proportion to the ability of that company or of that man to produce busi ness friends. If, through the general contractor, a material firm or a sub contractor is able to make money, these men will he his business friends. If he does not obtain a fair price for his work, he cannot afford to pav for his materials Who Pays the Estimating Cost? "AT ONE time in Chicago a survey and estimate was made as to just how much competi tive bidding cost the building industry. This estimate result ed in showing that an average of 3 per cent was the cost of this system of getting esti mates and selecting a general contractor. Last year the total cost of buildings erected in the Chicago district was more than $300,000,000, which, mul tiplied by 3 per cent, makes the enormous sum of approxi mately $10,000,000 as the cost of estimating in Chicago for that year. "As each contractor only gets a small proportion of the con tracts on which he makes esti mates, a great portion of this expense is wasted but at the same time is added to the ov erhead expense of each con cern involved. This overhead expense is paid for by every owner in the city who erects a building. This lays a heavy tax on the owner." C. Herrick Hammond, President, American Institute of Architests. nr his sub-contrrtcts in this proportion, nnii, therefore, cnnnnt hope to survive in business. Over a period of years, chance alone will be a lessening factor in buildina np the reputation of a general contractor. If the low price appeals to the prospective owner, who is looking for the Greatest return ror tne montv invested, or saosfi an architect who has been able to le' contract at a rock-bottom ngure, the will not he productive of the kind, friends who are a man s business m stay . . . the responsible sub-contractcf and material men who figure a leg! mate profit for their services and pr " nets. Many Problems Discussed at Frisco Convention ATTENDING a convention is when he told us the cost of a build' somewhat similar to attending a is the owner's risk, that a contra- revival--one is supposed to "ger reslih uuld not be required to underwrite gion." And whatever else might be said architect's whole idea and his low p of the San Francisco meeting of last liminary estimate. month it most assuredly was a gathering Then there was Henry. J. Ka'J abounding in the religion of "get a prof California contractor, whose diagn it," "sell construction," "create a de was that "the trouble with contractin' mand for your services." we are developing ourselves faster 1 George W. Kelham, past-president, Northern California Chapter, A. I. A.; started things off with his advice that contractors should tell owners the truth about incompetent architects who get their jobs on the basis of "more building for less money." He criticized contractors severely for cutting prices and throwing away profit in their attempts to justify the promise of the architect whose pre liminary estimate bore no relation to the true cost of the job. He stated that the A. G. C. is the only organization that can correct these troubles--that we can rec tify them all if we really want to. wc are developing the public." Whic& only another way of savins that if? want volume we must create it--no in the office sad-facedlv awaiting the, nouncement of a project. Other in tries create a demand for their produ contractors must create a demand, construction. People buy radios and' tomobiles because thev are "sold": possessing such things. They buy struction because thev finally come toi passive decision that they would lik build if thev can set a price cheap enq to conform to their opinion of wha cost should be. Speaking before the Builders' Division, Col. Starrett of New York City', minced no words in his remarks. Stating that contractors all are too prone to overstate themselves and undervalue their compet itors, he reminds us that in the light of past experience, 50% of all contractors now operating will be out of business in five years. Contractors were charged with being anxious only to set down a low figure and those who consider them selves builders were called upon to make certain they were paid for the ability thev claim. President Greensfelder impr everyone by his complete grasp of ? problems and by the efficient, sensible:, wholehearted manner in which he^ poses to meet them. On the floor''o convention, in the Board Meerings in the secretaries' meerings he con ally gave expression to new thou new ideas and new. wavs to attac questions. "Fair Proposals," as discussed by Lambie, president of Texas Bran' printed in full in this issue. The* speaks for itself and well indicat studv and thought evidenced in tlf Bid cutting is "selling short" and is marks of other speakers in their responsible for about fifty per cent of the discussions. Plenty of food for industry's troubles, the Colonel said. We was available to those who desire were reminded that the builder does not. O. R. McGuire, counsel of th sell material--he sells service, and the troller general of the United States builder who has no service to render another of his very interesting, disc should get out of the business. Col. Star of the relations between his ofl? rett touched upon Mr. KLelham's thoughts (Continued on pagi iS) Pjge 1: LONE STAR CONSTRUCTOR FOR FEBRUARY, l9S, SIXTH ANNUAL Frisco Convention V Southwest Road Show &. School Wichita, Kansas February 24-25 -26-27, 1931 Covers More Than 14 States Southwest's Largest Assembly of Men, Machinery and Materials Complete Data Sent on Requetr (Cantinus.i from p,,Se r3) general contractors who build fo federal government. Dr Meads' vivid picture of the constni difficulties involved in the constni" of Hoover Dam was well worth h One of the most inspirational talks^ whole session was made by Ha Culver, past-president of t h e NaAssociation of Real Estate Boards.* other speakers, coo numerous to me individually, were on the various, grams and there were few dull mom during the whole session. Huey & Philp Hardware Co. Dallas, Texas ?? Builders Hardware ?? Majestic Mail Chutes ?? Government Approved Apartment House Mail Boxes Numerous resolutions were passed^ first of which was one condemnin exploitation of labor by contractors.? used such means to squeeze a profr of a low bid or to secure new through price competition. Convicton public construction was conde and the use of convict labor in refo tion and rehabilitation of worn-outlands were recommended. Resolution No. 3 commended the-? reau of Contract Information for i cellent work and recommended t surety companies that no bond of 000 or more be written without first ferring with.the Bureau. Another* lunon pledged cooperation to surety panies, urged members of the A to file their reports with the Bureau, requested members to recognize an vor those surety companies supportih Bureau in its operations. One resolution advocated finandn public building construction through, issues. Another opposed the use of line tax funds for any use but thhighway construction. Quantity pur' ing of construction materials-by bodies was condemned; Texas Branch received recogm from the new administration in th< lowing appointments. Members, tional Advisory Council, C, S. L; Frank N. Watson, H. W. Unde Chairman of the Building Di H. W. Underhill. Appointment rious standing committees, A. ].Kenzie, J. T. Haile, Jr., S. B B. M. Lindslev, Frank N. Watso Herman Brown. Page 18 No account of the convention be complete without telling of the A of our California hosts in matters^ tertainment. Beginning at Pasad guests of the Southern Californ ter and closing Thursday night ,LONE STAR CONSTRUCTOR FOR FEBRUARY ipji 2-8033 2-8034 MOORE & COMPANY 404-406 Main St., DALLAS Complete Line t Building Material tAgents for Permanent Waterproofing Company Ironite System Gunite Concrete and Construction Company cnnventnui as guests or the Northern Cal ifornia Chapter at a dinner dance and cabaret performance, there was enter tainment galore. Northern California Chapter were the official hosts of the convention, and what hosts thev were. Open Valley Factory The Western Metal Mfg. Co., Hous ton. announces the openin'.: of an office and factorv at 320 North Third Street. Harlingen. The new plant is equipped for fabricating Armco Ingot Iron Cor rugated Pipe and galvanized surface irri gation pipe. Various tvpes of irrigation `jates will be carried in stock for imme diate delivery. The Western Metal Manufacturing Co. now has five plants in Texas located at Houston, Dallas, San Antonio, El Paso, and Harlingen. \ew Factory Branch The Allis-Ch aimers Manufacturing Co., Milwaukee, recently have opened a tractor division branch in Dallas at 3612 Commerce Street. This new office is in charge of R. S. Lowe, district manager for north Texas and Oklahoma. The Dallas branch w'H handle a full line of road building and construction equip ment, in no wav being limited to Ali.sChalmcrs' products. Customers and dealers in the Southwest will have avail able at the Dallas office a large stock of repair parts for Allis-Chalmers tractors. Texas Sand anf Gravel Co., 1$ Washed and Screened unAand Gravel Korn! Gravel and Radroad Ba Waco Amarillo Color LedbetteJ Large Stock Standard Workrd Southern Yel Pine and Pis LUMBER Car Lots Shipped Contractors . Station. Send for Delivered Price Unload and Inspez: Before Paying j Rusk County Lumber Co.J MANUFACTURERS 1510 Santa Fe Bldg.. Dallas, Texas j ROBERT W. HUM] Engineers inspecnori. test * copisultatiomI Inspection -and Testing of Strut? tural Steel -- Cement -- Reinforcing Steel--Creosoted Timber--Aspbal ---Field Inspection of Steel ancl Concrete Structure s--Cementj Chemical and Physical Laboratorisj DALLAS ^ Kansas City, Piraburgh, St. Louis. T New York. Chicago. New Orleans. -Jr San Francisco Crane-Compressor Road Roller ... Rargain Being mounted on a McCormickDeerinsj 10-20 Industrial Tractor, the Loadmaster crane-compressor combina The United States District Court TEN-TON Case Steam Road Roller--used but a few hours and in firstclass condition -- can be purchased at a fraction of its real value. tion is quite easily maneuvered. The crane can be fitted with 10, 12 or 14 foot booms and is rated at 3500 pounds capacity. It does those jobs which can not be handled easily by hand-labor. Rigidly mounted on the rear of the trac has upheld the Heath Patent: Contractors desiring to profig from the proven economy of Heatia Cube Construction are offered fuJJ cooperation and service through^ Qet details from J. I. Case Company tor is the 160 cubic foot capacity air com pressor, which is capable of taking care of three paving breakers, four riveting Fraser Brick Col LICENSEES 3 300 N. Austin St. 719 N. Cherry St. Dallas SAN ANTONIO hammers nr two rock drills. It is made bv Frederic H. Poor, Inc., New York. DALLAS SAM AMTOMIC Page zo LOSE STAR COSSTRUCTOR FOR FEBRUARY,