Masonry Magazine June 1996 Page. 17
ASC Demands Explanation of AGC Withdraw of Support for the Standard Form Contract
The Chairman of the Associated Specialty Contractor and the Presidents of the ASC's eight constituent associations are demanding an explanation for the Associated General Contractors of America's (AGC) withdrawal of support from the Standard Form Construction Subcontract.
In a letter signed by the ASC sponsoring associations to AGC President Lee Wray Russell, ASC expressed concern over reports that AGC has chosen to retreat from agreed upon privileges of the subcontract. Instead, AGC has chosen to develop an alternative subcontract which contains payment provisions previously rejected by ASC and the American Subcontractors Association. This now casts a shadow on the relationships between the ASC and AGC.
"As one of the sponsoring associations of ASC, we met with the trustees of the other ASC organizations to discuss our concern over AGC's withdraw of the "payment upon performance" provision of the new AGC 640 form," said Donald Grant, President of the Mason Contractors Association of America.
"Obviously, AGC's general contractor members were more interested in pay if paid provisions. We are now in the unfortunate position of having to examine whether AGC is fully prepared to work with ASC in good faith on issues that affect our industry," said Grant.
The Standard Form Construction Subcontract was published in 1994 after more than two years of a joint effort between members of the AGC, ASC and ASA. The contract was designed to promote more efficient, timely and economical construction and insure equitable and ethical relations between general contractors and subcontractors. It was also an accepted tool for moving beyond a source of historic disagreement until the rumored withdrawal of support by AGC.
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MASONRY-MAY/JUNE, 1996 17