MARBLE NATIONAL ASSOCIATION OF MARBLE DEALERS STATEMENT OF PRINCIPLES Resolved, by the Board of Directors of the National Association of Marble Dealers, that the following principles be promulgated as an expression of opinion on the part of this Association as to what constitutes fair methods of competitive bidding in the marble industry; that a copy of this Statement of Principles be printed as a suggestion for fair trade customs in the marble industry, and that they be recommended for adoption by all persons interested in the marble industry in the capacity of bidders or persons receiving bids for marble. 1. It is not considered fair for owners or architects to solicit bids direct from sub-contractors in cases where they are also soliciting bids from general contractors on the work as a whole. When there is no immediate intention of actually letting a contract, it is not fair to put either the general contractors or the sub-contractors to the expense of preparing actual bona fide bids. When such bids are invited and especially on a competitive basis. and where submitted in good faith, the bidders are entitled to assume that the contract will be awarded to someone on the basis of the bids as submitted. Contractors and sub-contractors should be willing to furnish approximate estimates of cost for the guidance of owners and architects in connection with the preliminary consideration of proposed building operations, but if actual bona fide bids are requested for information only such purpose should be stated, and where there is no immediate intention of going ahead with the work, it would be only fair for those soliciting the bids to pay the cost of preparing the same. 2. It is considered unfair to ask contractors and subcontractors invited to submit bids on work, to pay for the plans and specifications necessary to enable them to prepare the esti mates. 3. Fair dealing requires that a general contractor should award the sub-contract to that bidder on the sub-line whose figure he has used in his own estimate upon which he secured the general contract. 4. Any bid on any sub-line received and knowingly opened as such by a general contractor, prior to the submission of his own bid, should be considered a solicited bid whether submitted at the request of the general contractor or not. 5. It is not considered fair to conduct a second bidding upon the same plans and specifications after one set of bona fide competitive bids have been received. Therefore, if a general contractor secures a contract involving interior marble work without making use of or receiving bids upon the marble work prior to securing the contract, he shall have the benefit of all the bids already submitted by the marble contractors, but it is not considered fair for him to open the marble work to new bidders after the first set of bids have been submitted and inevitably become disclosed. It is equally unfair to open a job to new bidders with only minor changes in plans and specifications; it is also equally unfair to confine the purchaser to the original bidders when major changes are made. In the interest of all concerned, some reasonable and definite rule should be established as a Trade Custom, in this connection. 6. Anyone receiving and opening bids on marble work should keep them confidential until the marble contract has been awarded. The only satisfactory alternative to this is to appoint a day and hour for the opening of bids, and then open and read them publicly in the presence of all the bidders. Either plan is sanctioned by this Association. Divulging information relative to bids in such a manner as to result in favoritism is condemned no matter how it may be brought about. 7. Fair and just dealing requires that the contract for the marble work be awarded promptly to the satisfactory bidder at the price named in his bid without attempting to dicker or trade between the bidders themselves or with other parties who may not have submitted bids. If for any good reason new bids on revised plans must be asked for, every bidder whose bid has been opened in the first instance, should be permitted to bid at the second opening. 8. When competitive bids have been requested and received upon a lump sum basis, it is not considered fair for anyone except the low bidder to take the contract upon a percentage basis. 9. Because of difficulties and misunderstandings in the past in the endeavor to adjust certain charges often made against. sub-contractors, marble bids should contain no allowance for any of the following items: General cleaning, plaster patching, office or telephone service, light, heat, insurance on materials in or at the building (whether set in place or not) use of general gangways and hoisting facilities, for material and workmen, including service and power necessary for maintaining and operating the hoist, watchmen services, or the erection of temporary structures. The bids should clearly state the fact that no allowance has been made for any of the above items. If it is desired to make such charges against the marble work, it is considered fair for the marble contractor and the other party to the contract to reach an agreement as to the amount of such charges, and have such amount added to the amount named in the accepted bid for the marble work. In case it is agreed that the marble contractor should use the hoisting facilities in the building, and that the charge therefor be added to the amount of his contract, he should be protected against having to pay overtime because of not being able to use the hoisting facilities during the regular working hours. 10. A contract having been awarded for given grades of marble, it should be understood that reasonable variations from any small sample are inevitable and must be accepted, and that the job is to be executed in the grade or grades specified as generally understood in the trade. In the event of disagreement about the standard of workmanship or about the grade of the marble, the matter should be submitted to arbitration by two disinterested and competent arbitrators, one of whom should be selected by the Secretary of the National Association of Marble Dealers and the other by the architect. If necessary, the arbitrators should agree upon an umpire and the decision of any two should be binding on all parties. 11. A marble contractor having been offered a contract in accordance with a bid submitted by him, should accept it and do the work, even though it involves a loss due to changed conditions or his own mistake. 12. If action on bids is deferred beyond thirty days, any bidder should have the option of refusing to take the contract. 13. It is considered essential to justice, that a contract for marble work should protect the marble contractor on the following points: (a) Time lost by reason of strikes or lockouts, or any causes beyond the control of the marble contractor, should be added to the time of completion of the work covered by this con tract. (b) The matter of hoisting facilities, gangways, water, heat, light, etc., should be covered by a contract in accordance with principles stated in paragraph nine above. (c) The marble contractor should not be required to cut any marble or other material unless such work is specified definitely by the plans and specifications. If his work should have to be cut on account of inaccuracies in the building or in the plans, it should be paid for as extra work. (d) Any differences arising between the parties should. be subject to arbitration as provided for in the standard contract documents of the American Institute of Architects. (e) If a surety bond is required in connection with the marble work, the amount of the premium should be added to the amount of the contract for the marble work. (f) Delays in making current partial payments as they fall due should operate to extend the time of completion by the number of days involved in the delay, and should be otherwise treated as a default of the same character as failure of the marble contractor to complete the work in accordance with the time provision of the contract. (g) The above provisions (a) to (f) inclusive, should take precedence over any conflicting provisions in any of the contract documents. Proposal forms for marble work used by members of this Association should have printed thereon the foregoing paragraphs of Section 13 (a) to (g) inclusive, in such a manner that they will become legally an essential part of the proposal. 14. The principles above suggested, in Sections 1 to 13, inclusive, are all confined in their application to competitive bidding. Where the marble dealer and his customer are dealing together on a non-competitive basis, it is a question of man to man and this Association has no suggestions to offer. RULES FOR COMPETITIVE BIDDING Statement of Policy It is the opinion of this Association that it is to the best interests of the trade and all its customers that if possible, competitive bidding should be placed upon a basis where each bidder would submit the price at which he is willing to take the job, and then stand by it, and where parties receiving bids knowing that they have a set of bona fide competitive bids, should award the contract if possible, on the basis of bids as received without attempting to dicker or peddle bids after they have been received. The practice of dickering or peddling is accompanied by a great deal of chicanery and sharp practice. It greatly increases the expense of letting contracts to all concerned, and on the part of the management of the marble concerns, frequently interferes very seriously with their conduct of the work of actually producing marble. It is believed that in the long run, the cost of marble to the public would be less if by some fair and equitable method the practice of dickering and peddling could be wholly eliminated. The method usually adopted by the United States Government in handling competitive bids approximately accomplishes these ends, and with a view of accomplishing this, as far as possible, in the conduct of the marble trade, the following rules for competitive bidding have been adopted subject to the provisions of the ByLaws and in particular of Section 3, Article I of such By-Laws. These rules are binding upon members of this Association in their relations to each other in competitive bidding. 1. Definite Closing Date: In order to close as far as possible, all avenues by which a bidder might secure advance information as to the amounts of his competitor's bids, prior to the submission of his own bid, all members of this Association will submit competitive bids only under the following conditions: (a) That a definite closing date, naming the day and the hour after which no more bids will be received, be set in writing by the party requesting the bids and that the plans and specifications or the request for bids fully identify the building for which the marble work is intended. (b) Every member invited to bid must immediately notify the Secretary, by wire if necessary, of the closing date named to said members; if different closing dates are named to different members, the Secretary will notify all members proposing to bid to withhold their bids and not to submit them until a single definite closing date has been established. All members proposing to bid are required then to notify the party requesting the bids that they will submit their bids only in case a single definite closing date is established. Should this not result in a definite closing date being established by parties requesting bids. the Secretary will establish such a date and notify the interested members thereof. (c) Members must submit their bids to parties requesting them as nearly as possible at the last moment. It is preferable to do this in person or by messenger but where the mails or the telegraph must be used, then the time required for delivery must be carefully ascertained, so that the bids shall arrive in time, but not early enough to facilitate disclosure to competitors on the ground. (d) Every member bidding on a job shall prepare a carbon copy of his bid and send it to the Secretary. This copy |