Business, Finance, and Project Administration
Contract framework
Know the AIA family: A101/A102 owner-contractor agreements, A201 General Conditions, A401 contractor-subcontractor. Distinguish a Change Order (signed by all parties; adjusts both price and time) from a Construction Change Directive (owner-directed work performed before price is agreed). Contract types: lump sum, unit price, cost-plus-fee, and cost-plus with a Guaranteed Maximum Price - under a GMP the contractor absorbs overruns but typically returns savings to the owner.
Money, bonds, and liens
A bid bond is typically 5-10% of the bid; performance and payment bonds are typically 100% of contract value. Pay applications follow the Schedule of Values; retainage is commonly 5-10%. Memorize the four lien waiver types: conditional/unconditional crossed with progress/final. Trap: an unconditional waiver releases lien rights whether or not money actually changed hands - only the conditional versions depend on payment. Also know pay-when-paid versus pay-if-paid, prompt payment statutes, and trust-fund statutes.
Time and risk
In Critical Path Method scheduling, the critical path is the longest-duration path and carries zero float; delay on it delays substantial completion. Float generally belongs to the project unless the contract assigns it. Written notice within the contractual window is what preserves a delay claim. Insurances: CGL, workers' compensation, builder's risk (property during construction), umbrella/excess, and OCIP/CCIP controlled insurance programs.
Worked example
A $1,200,000 contract with 10% retainage. Month 1 billing is $150,000 of completed work: payment = $150,000 - $15,000 = $135,000. If retainage drops to 5% at 50% completion, check whether the reduction applies retroactively to prior billings - a frequent question wrinkle.