MN General Contractor cheat sheet

Gross profit = revenue − direct job costs; gross margin = gross profit ÷ revenue; markup = gross profit ÷ direct job costs.

Margin-to-markup conversion: markup = margin ÷ (1 − margin); margin = markup ÷ (1 + markup).

Working capital = current assets − current liabilities; current ratio = current assets ÷ current liabilities; quick ratio excludes inventory.

Break-even revenue = fixed overhead ÷ gross margin percentage.

In Minnesota, contractors generally pay sales tax on materials they consume and do not collect sales tax on construction labor; verify project-specific exemptions.

Retainage reduces cash collected; track aging of receivables and retainage separately from operating cash flow.

A job cost system captures labor, materials, equipment, subcontracts, and change orders by cost code; compare committed cost to budget.

Cash flow forecast = beginning cash + collections − disbursements; include deposit timing, progress billing lag, and retainage.

Overhead recovery allocates annual overhead to jobs using a consistent base such as direct labor hours or revenue.

The Minnesota State Building Code is adopted by rule; the Minnesota Residential Code applies to one- and two-family dwellings and townhouses, and the Minnesota Building Code applies to commercial construction.

A building permit is required before construction; typical inspections occur at foundation, framing, rough-in, and final, and concealed work must be approved before covering.

Footings must extend below the local frost line and bear on undisturbed soil or engineered fill.

Emergency escape openings require at least 5.7 square feet clear, at least 24 inches high, at least 20 inches wide, and a sill no more than 44 inches above the floor.

Conventional residential stairs use a maximum riser of 7.75 inches and a minimum tread depth of 10 inches; handrails are 34–38 inches high.

Guards are required at open sides, porches, and decks where the drop exceeds 30 inches; guard openings must reject a 4-inch sphere.

Smoke alarms are required in sleeping rooms and adjacent areas; carbon monoxide alarms are required where fuel-fired appliances or attached garages exist.

Wall bracing, anchor bolts, and ledger flashing must match approved plans and manufacturer instructions.

Energy code compliance uses a prescriptive or performance path; insulation, air sealing, windows, and HVAC must meet the adopted Minnesota energy code.

Contract formation requires offer, acceptance, consideration, capacity, legality, and mutual assent.

Minnesota Statute of Frauds requires a writing for land sales and contracts not performable within one year; use written change orders for extras.

Mechanic’s lien: pre-lien notice is generally required within 45 days after first furnishing for certain claimants; the lien statement is generally recorded within 120 days after last furnishing.

Foreclosure of a mechanic’s lien generally must be started within one year after the lien statement is recorded; verify statutory deadlines for the project.

A lien waiver releases lien rights only to the extent stated; a conditional waiver is effective on payment, while an unconditional waiver is effective on signing.

Retainage is withheld progress payment; track release conditions and any statutory limits for public and private work.

Substantial completion triggers the punch list, warranty start, and often retainage release; document it with a date and inspection.

Written notice to the owner or contractor and written change orders protect against unpaid extras and delay claims.

Project administration records include daily logs, RFIs, submittals, schedule updates, and written directives.

OSHA construction fall protection is required at 6 feet or more above a lower level using guardrails, safety nets, or personal fall arrest.

Portable ladders are set at a 4:1 angle, extend at least 3 feet above the landing, and are secured at top and bottom.

Excavations 5 feet or deeper require a protective system; spoil and equipment are kept at least 2 feet from the edge; trenches 4 feet deep require access every 25 feet of lateral travel.

Scaffold work at 10 feet or more requires fall protection; guardrail top rails are typically 38–45 inches high.

Minnesota OSHA enforces workplace safety; employers must report fatalities within 8 hours and hospitalizations or amputations within 24 hours.

Hazard Communication requires chemical labels, safety data sheets, and employee training for hazardous materials on site.

A stormwater NPDES permit is required for construction disturbing 1 acre or more; implement a SWPPP with erosion and sediment controls.

Minnesota employers must carry workers’ compensation insurance for employees; independent contractor status depends on control and business factors.

Public works projects may require prevailing wage and certified payroll; verify the project wage determination.