Making a Comeback
In today’s world of contemporary smart homes, we have in many ways surpassed the minimalist style of Modernism in architecture. However, there are some aspects of this build style that have made a comeback in recent years.
Building regulations have also made quantum leaps since the stark era of Modernism. During this era, in the first half of the 20th century, rules came into play to stop monopolization and support healthy competition.
Then in the second half of the 20th century, all aspects of the building industry boomed. Many new businesses grew from the Mom-and-Pop single owner to a large conglomerate.
Now, we find ourselves in an age of more and more corporate buyouts. So we must ask, are some monopolistic business practices from centuries past also making a comeback?
To answer this question fairly, let’s venture into the field of building codes and the spec writing required to comply with these codes.
Why do building specifications exist?
Take a look at today’s International Building Code (IBC) and how it is implemented. You will see that the IBC is the foundation of the larger family of international codes that were put in place in the year 2000 to protect the public’s health, safety, and welfare. These codes are updated every three years to allow for new materials, products, technologies, and corrections. While certain regions take more time than others to adopt certain updates, the IBC does drive needed progress in construction all around the world.
The overall goal of the IBC is to make room for efficient designs that provide flexibility for the code official, designer, engineer, and architect and encourage the use of newer technological advances.
Today’s IBC is known for the following:
- Safety
- Ease of Use
- Embrace of New Technology
- Correlation
- Open and Honest Code Development Process
What is a spec writer?
A specification writer works in an architectural firm, for a manufacturer or contract house, or independently. Their primary responsibility is to develop a road map to accompany architectural drawings, providing specific guidelines and product options that suit various aspects of the project. Multiple spec writers may be employed to complete the document, focusing on their specific areas of expertise. Specification writing details the requirements of the procurement. It is the basis of all offers and the foundation for a contract. A specification is an essential contract management document that ensures supplier options meet the expectations of the building owner and end user.
How do we avoid monopolies in spec writing?
For over 130 years, antitrust enforcement has discouraged unlawful mergers and business practices and leaves the courts to decide which ones are illegal based on the facts of each case. Moreover, courts apply antitrust laws to changing markets, from an era of horses and buggies to the present digital age.
At their core, the antitrust laws have had the same fundamental objective: to protect the process of competition for the benefit of consumers, making sure there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up.
History of Three Federal Antitrust Laws
Today, these core antitrust laws are still in effect with some revisions.
- 1890: Congress passed the first antitrust law. The Sherman Act was a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.” The Sherman Act outlaws “every contract, combination, or conspiracy in restraint of trade” and any “monopolization, attempted monopolization, or conspiracy or combination to monopolize.”
- 1914: Congress passed the Federal Trade Commission Act, which created the Federal Trade Commission (FTC). The Federal Trade Commission Act was signed in response to the 19th-century monopolistic trust crisis. The Federal Trade Commission Act bans “unfair methods of competition” and “unfair or deceptive acts or practices.” However, outside of the Sherman Act, the FTC Act also reaches other practices that harm competition. As a result, only the FTC brings cases under the FTC Act.
- 1914: Congress also passed the Clayton Act, which addresses specific practices that the Sherman Act does not prohibit, such as mergers and interlocking directorates (the same person making business decisions for competing companies). The Clayton Act was amended again in 1976 by the Hart-Scott-Rodino Antitrust Improvements Act to require companies planning large mergers or acquisitions to notify the government of their plans in advance.
History of CSI: Construction Specifications Institute
CSI helped develop fair competition methods for the building and construction industry.
- 1948: (CSI) was founded in March 1948 by the specification writers of government agencies who came together to improve the quality of construction specifications. The institute’s efforts were essential in improving construction specification quality to meet the demands of the post-war construction boom.
- CSI developed specifications best practices, promulgating standards and formats to improve the organization of specification information, professional education, and certification. These developments were cornerstones of the institute.
- 2010: CSI proliferated to include specification writers in the private sector. In November 2010, CSI acquired Building Systems Design (BSD) to help advance software tools for specifications development and communication of building information across the building team.
The “Rule of Three” in Spec Writing Options
In response to monopolization, laws were implemented that required a minimum of three equal options to be included in construction specifications so that contractors and building owners alike could control the budget and the outcome of their projects.
For contractors, using any combination of these three (or more) equal options could result in a competitive quote for the job, as the other competing contractors may come up with different numbers.
In theory, this practice sounds fair and reasonable. An architect reaches out to a spec writer, or employs one in-house, requesting a specification be created for a project that is viable. Ideally, Manufacturers’ Representatives can then generate Request For Approval submittal packages for products that also achieve the same codes, looks, and finishes, in an effort to offer even more diversity of product options for contractors and building owners to choose from.
The “Rule of Three” and the Smaller Manufacturer
Does the builder or architect have three equal options if all of the separate brands are owned by the same umbrella company? Does one truly have options if a small group of umbrella companies dominate the specification process, using in-house teams to flood the marketplace with free specifications mostly in-house branded?
As mentioned, some larger conglomerates offer free spec writing. Unfortunately, this allows spec options to be “monopolized” by their own products and disadvantages the smaller manufacturers.
So, fair and free trade is debatable when it comes to spec options. The larger manufacturers can afford to write free specs, which is highly attractive to Architects whose customers are operating on tighter and tighter budgets. So, of course, they often end up with the job.
We are left wondering how independent spec writers can compete when they are up against the price of “free”? Is there a place for more creativity and competition? Furthermore, would there be a need to “break” a specification if the game was not rigged in the first place?
History Repeating Itself
The building and hardware industry is no exception in an age where large conglomerates monopolize smaller companies across all markets. So, by looking back in time, it is ironic to read about the climate in which the antitrust laws came into being.
In closing, it might be essential to ponder the health of the playing field and ask how well we as a nation and a world are maintaining and fostering healthy competition among our fellow manufacturers. In an age where big corporations frequently absorb or outbid smaller independent entities, it is important to look back to see how we arrived here.
