MS General Contractor cheat sheet

Mississippi LLCs are formed by filing a certificate of formation with the Secretary of State; a foreign LLC must file a certificate of authority before doing business in the state.

Sole proprietorships and general partnerships expose owners to unlimited personal liability; LLCs and corporations generally shield owners from business debts.

Working capital = current assets − current liabilities; it measures the cash and near-cash resources available to fund short-term operations.

Current ratio = current assets ÷ current liabilities; quick ratio = (cash + marketable securities + receivables) ÷ current liabilities.

Debt-to-equity = total liabilities ÷ owners' equity; a rising ratio signals greater reliance on borrowed funds and reduced bonding capacity.

Mississippi employers generally must carry workers' compensation insurance when they have five or more employees; sole proprietors and partners may elect coverage.

Mississippi unemployment tax liability begins after paying $1,500 in wages in a calendar quarter or employing one or more workers for 20 weeks in a calendar year.

Contractors are generally consumers of construction materials in Mississippi, so they pay sales tax on materials and do not collect sales tax on the installed improvement.

A municipal or county privilege license may be required in addition to the state contractor license; local business licenses do not replace the MSBOC license.

A change order must be in writing and signed by the owner and contractor; oral directives should be confirmed in writing before performing extra work.

Liquidated damages must be a reasonable forecast of probable loss at contract formation; a clause that punishes the contractor is unenforceable as a penalty.

Substantial completion is the stage when the work is usable for its intended purpose, even if punch-list items remain; final completion follows correction of all punch-list items.

Type I differing site condition: subsurface conditions differ materially from those indicated in the contract documents; Type II: conditions differ from those ordinarily encountered.

Notice provisions are conditions precedent in many contracts; late written notice can bar an otherwise valid delay or change claim.

A pay-when-paid clause generally sets timing of payment; a pay-if-paid clause can make owner payment a condition precedent to subcontractor payment, depending on state law.

Under the federal Miller Act, a subcontractor on a federal public project must give written notice within 90 days after last furnishing labor or materials and sue on the payment bond within one year.

Retainage is a percentage withheld from progress payments to ensure completion; it reduces contractor cash flow and is released after substantial or final completion per contract.

Termination for convenience allows the owner to stop work without cause, typically paying for work performed, reasonable closeout costs, and profit on completed work.

Mississippi requires a Certificate of Responsibility for construction contracts of $50,000 or more; the license is issued by the Mississippi State Board of Contractors.

Public bid envelopes for Mississippi projects over $50,000 must display the contractor's Certificate of Responsibility number on the outside; bids without it can be rejected.

Unlicensed contracting above the threshold can render the contract unenforceable and subject the contractor to penalties; licensing is generally a prerequisite to sue for the contract price.

A qualifying party is the individual who passes the MSBOC examination and is responsible for the contractor's operations; the license is issued to the business entity.

A mechanics' lien claimant must file a notice of lien with the chancery clerk of the county where the property is located within 90 days after last furnishing labor or materials.

An action to enforce a Mississippi mechanics' lien must generally be filed within 12 months after the lien is filed, or the lien expires.

No mechanics' lien attaches to public property; unpaid subcontractors on public projects look to the payment bond, not a lien.

Conditional lien waivers take effect only when payment is received; unconditional waivers are effective on signing and should be limited to the amount paid.

A lien waiver is not a release of rights for disputed or unpaid amounts unless the waiver expressly says so.

Critical path is the longest continuous path through the network; activities on it have zero total float and control project duration.

Total float = late start − early start, or late finish − early finish; free float = early start of successor − early finish of activity.

PERT expected duration = (optimistic + 4 × most likely + pessimistic) ÷ 6.

Crashing shortens duration by adding resources to critical activities; choose the activity with the lowest crash cost per day first.

Fast-tracking overlaps design or construction phases to compress schedule; it increases coordination risk and change potential.

Resource leveling shifts activities within available float to smooth resource peaks; it can consume float and change the critical path.

A three-week look-ahead schedule identifies upcoming activities, constraints, and required resources; it is updated weekly.

Daily reports should record weather, crew counts, equipment, deliveries, visitors, delays, and verbal directives; they are contemporaneous evidence.

RFI log tracks questions and responses; unresolved RFIs can justify delay if they affect critical-path work.

Concrete volume in cubic yards = length (ft) × width (ft) × depth (ft) ÷ 27.

Roofing quantity: one square = 100 square feet; divide roof area by 100 to get squares.

Board feet = thickness (in) × width (in) × length (ft) ÷ 12.

Markup on cost = (price − cost) ÷ cost; gross margin = (price − cost) ÷ price; price = cost ÷ (1 − desired margin).

Bid bond typically equals 5% to 10% of the bid; performance and payment bonds typically equal 100% of the contract price.

Addenda are written changes issued before bid opening; bidders must acknowledge each addendum on the bid form.

CSI MasterFormat Division 01 covers general requirements such as submittals, temporary facilities, and closeout.

Unit-price bid total = estimated quantity × unit price; actual payment is based on measured quantities.

Contingency in a conceptual estimate is commonly 5% to 10% for design-bid-build and higher for early schematic estimates.

OSHA construction fall protection is required at 6 feet above a lower level for general construction; scaffolds trigger at 10 feet and steel erection at 15 feet.

Excavations 5 feet or deeper require a protective system unless a competent person determines stable rock; access/egress is required every 25 feet.

Spoil piles and equipment must be kept at least 2 feet from the excavation edge; the competent person inspects daily and after rain.

Scaffolds require a 4:1 height-to-base ratio, fully planked work platforms, guardrails, and competent-person inspections.

Permit-required confined spaces require atmospheric testing, an attendant, ventilation or respiratory protection, and a rescue plan.

Hazard Communication requires safety data sheets, labeled containers, and worker training on chemical hazards.

Risk treatment options are avoid, reduce, transfer (insurance/bonds), and retain; safety programs primarily reduce frequency and severity.

Mississippi workers' compensation covers employees injured on the job; the exclusive remedy generally bars employee tort suits against the employer.

Crane operations require a load chart, qualified operator, signal person, and barricaded swing radius.

Balance sheet reports assets, liabilities, and equity at a point in time; income statement reports revenue and expenses over a period.

Percentage-of-completion revenue = total contract price × (costs incurred ÷ total estimated costs).

Underbillings (costs and estimated earnings in excess of billings) are an asset; overbillings are a liability.

Break-even revenue = fixed costs ÷ contribution margin ratio, where contribution margin ratio = (revenue − variable costs) ÷ revenue.

Gross profit margin = (revenue − cost of goods sold) ÷ revenue; net profit margin = net income ÷ revenue.

Cash flow is not the same as profit; construction typically requires cash outlays for labor and materials before progress payments arrive.

Aging accounts receivable measures how long invoices remain unpaid; slow collections increase borrowing needs and can impair surety capacity.

Sureties evaluate working capital, net worth, liquidity, debt, backlog, and completed-project history when setting bonding capacity.

Equipment ownership costs include depreciation, interest, insurance, and taxes; operating costs include fuel, repairs, and tires.

Davis-Bacon requires prevailing wages on federal construction contracts over $2,000; contractors submit certified payrolls weekly.

FLSA child labor rules limit 14- and 15-year-olds' hours and prohibit hazardous occupations for workers under 18.

Mississippi employers with five or more employees must use E-Verify to confirm employment eligibility under the Mississippi Employment Protection Act.

OSHA injury and illness logs (Form 300) are required for most construction employers, but establishments with 10 or fewer employees are exempt from routine logkeeping.

NPDES Construction General Permit applies to land disturbance of one acre or more; a Stormwater Pollution Prevention Plan (SWPPP) and inspections are required.

Stormwater controls include silt fence, sediment basins, stabilized construction entrances, and immediate seeding or mulching of disturbed areas.

NESHAP requires an asbestos survey before renovation or demolition of a facility; regulated asbestos-containing material must be removed by trained workers.

EPA's Renovation, Repair and Painting rule requires lead-safe certified firms and workers for renovation of pre-1978 housing and child-occupied facilities.

Section 404 of the Clean Water Act requires a U.S. Army Corps of Engineers permit before dredging or filling wetlands.