Contracting Business and Project Management
Contract and project controls
This domain tests the business side: contract scope, submittals, scheduling, changes, pay applications, and documentation. A fire sprinkler contract should define the code edition, drawings, specifications, exclusions, schedule, and responsibility for permits and inspections. Shop drawings and hydraulic calculations are submittals, not informal sketches. RFIs must be answered in writing before installation. Keep a log of delays, deliveries, inspections, and extra work. Define who provides fire department connection signage and final acceptance test witnesses.
Change orders and payment
Price changes with a clear breakdown: material, labor hours, equipment, subcontractors, permits, overhead, and profit. A change order should state schedule impact and whether it extends the contract time. Pay applications should follow the schedule of values and include lien waivers as required. Under Florida construction lien law, a subcontractor or supplier not in privity with the owner generally must serve a Notice to Owner to preserve lien rights; serve it before first furnishing or within 45 days after first furnishing. Retainage and final payment are tied to completion documents and affidavits.
Worked example
The owner adds 24 sprinklers after rough-in. Material is $1,800; labor is 36 hours at $70 = $2,520; equipment is $300. Subtotal = $1,800 + $2,520 + $300 = $4,620. Overhead and profit at 15% = $693. Change order total = $5,313. The contractor also notes a two-day schedule impact and attaches the revised drawing. This is better than a lump-sum price because the owner can audit the labor and material.
Traps
Do not perform extra work without a written change order or authorized field directive. Do not let a pay application omit stored materials or lien waivers. Do not treat a verbal schedule promise as a time extension. Do not confuse a Notice to Owner with a lien; it is a preliminary notice. Document every field directive with a dated photo and email, and keep submittal approval dates.