Masonry Magazine March 1971 Page. 8
He includes the additional cost financing the delayed payments on all his bids," Snow revealed.
"The number of contractors choosing the former alternative is steadily rising, resulting in more contract awards to marginal contractors.
"This, in turn, causes expansion of payment delays due to the poorer efficiency of the marginal contractor. Moreover, the total costs of construction increase in direct proportion to the increase in such awards to marginal contracting firms.
"Competition is vital to economic growth but excessive competition often results in substantial diseconomies," Snow said.
Another major cause of construction cost inflation cited by the Milwaukee construction industry executive is "the so-called double jeopardy" imposed on the contractor through the used of retained percentages in combination with performance and completion bonds.
"We have no quarrel with the thought that owners - public and private - should have 'insurance policies' guaranteeing them that the work will be done as contracted," he explained.
"Our MMM study indicated that over $78 million in retained percentages was held up for varying lengths of time last year in the State of Wisconsin. We have not been able to find a similar figure for the cost of obtaining bonds throughout the state last year.
"When you consider the contractor most likely - in a tight money situation - must borrow money on a short-term basis to meet his payroll every week to accommodate delays in final payments and that he has to bear the cost of a performance or completion bond as well and that he adds these costs to his bid, you can begin to understand why we want to wipe out double jeopardy.
(Continued on page 38)
DICK SNOW
Richard E. Snow is Director of Industry Promotion for the Allied Construction Employers Association, Milwaukee. He has been involved in promotional work for approximately twenty years. In 1968, Dick was selected "Sales Promotion Executive of the Year" for the state of Wisconsin. He has been deeply involved in the fields of public relations and advertising throughout most of his professional career as well as being associated with clients throughout the construction industry. During the past year it was in Milwaukee that the idea to "Make Money Move in '71" was originated, and through the efforts of Dick Snow and ACEA great strides have been made in conveying this theme to the investors and the public officials with whom we in the construction industry must deal.
ILOOK FOR THE RED PADDLES & SEALSI
All New
RED
Super Seal
NEW!
EXTRA BLADES
WITHOUT
EXTRA COST
NEW RED "SANDWICH"
BLADES-STEEL
AND RUBBER
RED SUPER SEAL Completely eliminates greasing, re-adjustments and seal maintenance. This means more production time for your mixer. The new abrasion-resistant URETHANE SEAL lasts 6 times as long as ordinary seals.
RED SANDWICH BLADES These combination paddles have rubber inner blades backed by steel outer blades ready for immediate use. Convert to steel blades in minutes.
WESTERN
WESTERN PRODUCTS
1234 North 62nd Street
Milwaukee, Wisconsin 53213
A DIVISION OF DOUGLAS DYNAMICS CORPORATION