CA General Contractor flashcards
CA General Contractor · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Contractor license threshold
- In California, a contractor license is required when the combined cost of labor and materials for a project exceeds $500; unlicensed contracting can bar recovery of compensation.
- Markup versus margin
- Markup is profit divided by cost, while margin is profit divided by selling price. A 25% markup equals a 20% margin, so the terms are not interchangeable.
- Break-even point formula
- Break-even sales equal fixed costs divided by one minus the variable-cost ratio. At that sales level, total revenue covers total fixed and variable costs with zero profit.
- B license scope
- A California B (General Building) license allows construction of buildings and structures and related work. Specialty trade work must be subcontracted unless the B licensee also holds that specialty classification.
- License number on advertising
- California contractors must include their license number on advertisements, contracts, bids, and other business documents. Advertising without a valid license number can lead to CSLB disciplinary action.
- Unlicensed contractor payment bar
- Under California Business and Professions Code section 7031, an unlicensed contractor generally cannot sue to collect compensation for work requiring a license, even if the work was performed correctly.
- Plan scale 1/4 inch
- A drawing scale of 1/4 inch = 1 foot means one-quarter inch on the printed plan represents one foot of actual construction. Scale factors convert measured plan distances to real dimensions.
- Addendum versus ASI
- An addendum changes bid documents before bid opening and becomes part of the contract. An Architect's Supplemental Instruction clarifies or changes work after award and may lead to a change order.
- Written dimensions control
- On construction drawings, written dimensions generally govern over scaled measurements. If a dimension conflicts with a scale measurement, the contractor should request clarification rather than scaling the drawing.
- Bid bond percentage
- A California public works bid bond is typically 10 percent of the total bid amount. It guarantees the bidder will enter the contract and furnish required performance and payment bonds if awarded the project.
- Contingency in estimate
- Contingency is an estimate allowance for unknown conditions or risks not covered by unit prices. It is not profit and is included to reduce the chance of a cost overrun.
- Unbalanced bid
- An unbalanced bid assigns higher prices to early or likely-increased quantities and lower prices to later items. Public agencies may reject materially unbalanced bids because they can distort competition and payment.
- Change order requirement
- A written change order signed by owner and contractor modifies the contract price, time, or scope. Oral instructions can create disputes; written authorization is the standard method for formal contract changes.
- Substantial completion effect
- Substantial completion occurs when work is sufficiently complete for its intended use. It typically starts warranty periods, shifts risk of loss, and allows release of retention subject to contract terms.
- Liquidated damages rule
- Liquidated damages are a fixed sum agreed in advance for delay. California courts enforce them only if they are a reasonable estimate of probable loss, not a penalty.
- Preliminary notice deadline
- In California, a claimant without a direct contract with the owner generally must serve a 20-day preliminary notice to preserve full mechanics lien rights. Late notice limits the lien to work in the 20 days before notice.
- Mechanics lien recording period
- A California mechanics lien generally must be recorded within 90 days after completion of the work of improvement. A recorded Notice of Completion shortens that period to 60 days for direct contractors and 30 days for others.
- Stop payment notice purpose
- A stop payment notice directs an owner or construction lender to withhold funds owed to the contractor. It gives a subcontractor or supplier a payment claim against those withheld funds.
- Payment bond claim
- On California public works, a payment bond protects claimants who supply labor or materials. A claimant must follow statutory notice and timing requirements and generally cannot record a mechanics lien against public property.
- Daily overtime threshold
- California requires 1.5 times the regular rate for hours over 8 in a workday and over 40 in a workweek. Double time applies over 12 hours in a day and over 8 hours on the seventh consecutive day.
- Meal period requirement
- California employers must provide a 30-minute unpaid meal period before the end of the fifth hour of work. A second meal period is required before the end of the tenth hour.
- Certified payroll requirement
- Contractors on California public works must submit certified payroll records weekly, using form DIR PWC-100 or an approved equivalent, listing each worker's classification, hours, and wages.
- Cal/OSHA fall threshold
- California construction safety orders generally require fall protection when workers are exposed to a fall of 7.5 feet or more. Guardrails, safety nets, or personal fall arrest systems are acceptable protections.
- Excavation protective system
- Cal/OSHA requires a protective system for excavations 5 feet or deeper when there is a potential for cave-in. A competent person must inspect excavations daily and classify soil conditions.
- IIPP requirement
- Every California employer must have a written Injury and Illness Prevention Program (IIPP) covering safety responsibilities, hazard identification, training, and correction of unsafe conditions.
- Prevailing wage threshold
- California public works projects over $1,000 generally require payment of prevailing wages. Contractors and subcontractors must register with the Department of Industrial Relations.
- Public works retention cap
- California public works contracts generally limit retention to 5 percent of the contract price. Retention is withheld until final completion and is subject to statutory release rules.
- Lowest responsible bidder rule
- Public agencies generally must award construction contracts to the lowest responsible bidder who submits a responsive bid. Bid responsiveness and bidder responsibility are evaluated separately.
- Subcontractor listing law
- California's Subletting and Subcontracting Fair Practices Act requires a prime bidder on public works to list subcontractors in its bid. Substitution after award is limited to statutory grounds.
- Notice of Completion
- An owner records a Notice of Completion after completing a work of improvement. It shortens mechanics lien filing periods and starts deadlines for final payment and lien release.
- Punch list purpose
- A punch list identifies minor incomplete or defective work found during final inspection. Completion of punch list items is usually required before final payment and closeout.
- As-built drawings
- As-built drawings record actual constructed conditions, including changes made during construction. They are closeout documents used for future maintenance, renovations, and record keeping.