MN General Contractor key terms

A line-item breakdown of the contract price that assigns a dollar amount to each portion of the work. Progress payments and stored materials are billed against these values.

A percentage of each payment withheld by the owner until the work is substantially or fully complete. It protects the owner against unfinished work and unpaid subcontractors and suppliers.

Weekly payroll reports, signed under penalty of perjury, listing each worker's classification, hours, and wages. They are required on public projects to prove prevailing wage compliance.

Overhead is the ongoing cost of running the business, such as rent, insurance, and office staff. Profit is what remains after all costs. Both are recovered through markup on direct job costs.

A forecast of when money will come in and go out over the life of a project. It helps a contractor time payroll, supplier payments, and billing draws to avoid shortfalls.

The maximum dollar volume of work a surety will back for a contractor at one time. It is set from financial strength, past performance, and current project backlog.

Property coverage on a project under construction, insuring the structure, stored materials, and equipment against fire, wind, theft, and similar loss until the owner takes over.

A Minnesota fund that can reimburse a homeowner holding an unpaid court judgment against a licensed residential contractor, for losses arising from the contractor's work on a residential project.

A statutory claim against real property that secures payment for labor, materials, or services that improved it. In Minnesota it must be recorded and then enforced within set deadlines.

A written notice a Minnesota contractor or subcontractor gives the property owner early in the project, warning that lien rights may be claimed if the bill is not paid.

A written statement, usually given in exchange for payment, giving up the right to file a lien for work or materials already furnished, often limited to the amount actually received.

A surety bond guaranteeing that a contractor will pay subcontractors and suppliers on the project. It gives unpaid parties a way to recover without filing a lien against the property.

A written modification, signed by the owner and contractor, that changes the scope, price, or schedule of the original contract before the work is performed.

A formal written question from the builder to the design professional asking for clarification of drawings or specifications. The written answer becomes part of the project record.

Shop drawings, product data, samples, or certificates the contractor sends to the design team to show that proposed materials and methods meet the contract documents.

The stage when the work is usable for its intended purpose even though minor items remain. It usually starts warranty periods and triggers release of retainage.

A written list of incomplete or defective items found during a walkthrough near the end of the job, which the contractor must correct before final acceptance.

A pre-set amount of money the contract requires the contractor to pay for each day of delay past the completion date, agreed in advance so actual losses need not be proven.

Physical conditions at the site, such as unexpected rock or groundwater, that differ materially from what the contract documents indicated and may justify extra time or money.

The statewide construction regulations adopted by the state and enforced by local building officials, covering structural, fire, mechanical, plumbing, and related requirements for buildings.

An official document issued by the building department confirming that a completed structure meets code and may legally be occupied or used for its stated purpose.

The continuous path a person follows to escape a building during a fire, made up of exit access, the exit itself, and the exit discharge to open air.

The length of time, measured in hours, that a building assembly such as a wall, floor, or column can hold back fire and heat under a standardized laboratory test.

The depth to which soil freezes in winter. Footings must extend below this depth so that frost heave does not lift, shift, or crack the foundation.

The weight of snow per square foot expected on the ground in a given location, used with exposure and slope factors to design roof framing and connections.

A wall that carries weight from floors, roofs, or other walls above it and transfers that load to the foundation. Removing or altering it requires engineering review.

The minimum distance a local zoning ordinance requires a building or structure to sit back from property lines, streets, or waterways.

Meeting the state's adopted energy conservation rules for insulation, windows, air sealing, and equipment efficiency, shown through prescriptive tables or whole-building performance modeling.

The Minnesota Occupational Safety and Health Administration, the state agency that adopts and enforces workplace safety and health standards for Minnesota construction employers.

A worker designated by the employer who can recognize hazards and has authority to take prompt corrective action, required for tasks such as excavation, scaffolding, and fall protection.

Systems and practices that keep workers from falling from heights, including guardrails, safety nets, personal fall arrest, and controlled access zones.

Sloping, benching, shoring, or trench shields used to keep excavation walls from collapsing on workers, selected by a competent person based on soil type and depth.

A standardized document from the product manufacturer listing a chemical's hazards, safe handling, first-aid steps, and required protective equipment for users.

The practice of shutting off and physically locking or tagging energy sources on equipment so it cannot be started while workers service or repair it.

Fine dust released when cutting, grinding, or drilling concrete, stone, or masonry. It can damage lungs, so exposure is controlled with water, ventilation, and respirators.

Insurance that pays medical costs and part of lost wages to employees injured on the job, regardless of fault, in exchange for limits on suing the employer.

A Stormwater Pollution Prevention Plan: a site-specific document describing erosion and sediment controls, good housekeeping, and inspections required under a construction stormwater permit.

The regulated removal, enclosure, or encapsulation of asbestos-containing material by trained and certified workers following state and federal health rules.