MS General Contractor flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Working Capital

Current assets minus current liabilities. It measures the short-term liquidity a contractor has to pay bills, fund payroll, and absorb job costs before payments arrive.

Current Ratio

Current assets divided by current liabilities. A ratio above 1.0 means the firm has more short-term assets than short-term obligations; higher ratios generally indicate stronger liquidity.

Mississippi LLC Formation

A Mississippi limited liability company is created by filing a certificate of formation with the Secretary of State. Foreign LLCs must file a certificate of authority before transacting business in Mississippi.

Workers' Comp Threshold

Mississippi employers generally must provide workers' compensation coverage once they have five or more employees. Sole proprietors and partners are not automatically covered and may elect coverage.

Change Order

A written modification to the contract scope, price, or time, signed by the owner and contractor. Oral changes should be confirmed in writing before the contractor performs extra work.

Liquidated Damages

A contract sum agreed in advance as a reasonable estimate of owner losses from delay. Courts enforce it only if it is not a penalty and actual damages are difficult to determine.

Substantial Completion

The stage when the project is sufficiently complete for its intended use, even though punch-list items remain. It often starts warranty periods and triggers retainage release under the contract.

Miller Act Notice

On federal public projects, a subcontractor must give written notice to the prime contractor within 90 days after last furnishing labor or materials, then sue on the payment bond within one year.

Certificate of Responsibility

Mississippi's contractor license issued by the State Board of Contractors. It is required for construction contracts of $50,000 or more and the number must appear on public bid envelopes.

Mechanics' Lien Deadline

In Mississippi, a lien claimant generally must file a notice of lien with the chancery clerk in the county where the property is located within 90 days after last furnishing labor or materials.

Lien Enforcement Period

A Mississippi mechanics' lien generally must be enforced by a lawsuit filed within 12 months after the lien is filed. If no suit is timely filed, the lien expires.

Conditional Lien Waiver

A waiver that becomes effective only when the stated payment is actually received. It protects the owner from paying twice while giving the contractor credit for the expected payment.

Critical Path

The longest continuous sequence of dependent activities through a project network. Activities on the critical path have zero total float and determine the shortest possible project duration.

Total Float Formula

Total float equals late start minus early start, or late finish minus early finish. It is the amount an activity can be delayed without delaying the project completion date.

PERT Expected Duration

Expected time equals (optimistic plus four times most likely plus pessimistic) divided by six. It weights the most likely estimate and is used when activity durations are uncertain.

Resource Leveling

Shifting activities within their available float to smooth peaks in labor, equipment, or cash demand. It can consume float and may change the critical path.

Concrete Cubic Yards

Volume in cubic yards equals length in feet times width in feet times depth in feet, divided by 27. This converts cubic feet to the cubic yards used for concrete ordering.

Roofing Square

A roofing square equals 100 square feet of roof area. Divide the total roof area by 100 to determine the number of squares for material and labor pricing.

Markup Versus Margin

Markup is profit divided by cost; margin is profit divided by selling price. To price for a desired margin, divide cost by one minus the margin percentage.

Addendum

A written change to bidding documents issued before bid opening. Bidders must acknowledge each addendum on the bid form, and it becomes part of the contract documents.

Fall Protection Height

OSHA generally requires fall protection at 6 feet above a lower level in construction. Scaffolds trigger at 10 feet, and steel erection activities trigger at 15 feet.

Excavation Protective System

Excavations 5 feet or deeper require a protective system such as sloping, shoring, or shielding unless a competent person determines the excavation is in stable rock.

Competent Person

An individual capable of identifying existing and predictable hazards and authorized to take prompt corrective action. OSHA requires competent persons for excavations, scaffolding, fall protection, and other high-risk tasks.

Risk Transfer

Shifting financial consequences of loss to another party, commonly through insurance, surety bonds, indemnity clauses, and subcontracts. It does not eliminate the underlying hazard.

Percentage of Completion

Revenue recognized equals total contract price times costs incurred divided by total estimated costs. It matches revenue with progress and is common for construction contracts.

Underbillings

Costs plus estimated earnings in excess of amounts billed to the owner. Underbillings are reported as an asset and represent work performed but not yet invoiced.

Break-Even Revenue

Fixed costs divided by the contribution margin ratio. The contribution margin ratio is revenue minus variable costs, divided by revenue.

Surety Bonding Capacity

The maximum bonded work a surety will support, based on working capital, net worth, liquidity, debt, backlog, and the contractor's completed-project record.

Davis-Bacon Act

Federal law requiring prevailing wages and fringe benefits on federal construction contracts over $2,000. Contractors submit certified payrolls weekly and post wage determinations.

E-Verify Requirement

Mississippi employers with five or more employees must use E-Verify to confirm new hires' employment eligibility. The Mississippi Employment Protection Act imposes this requirement.

NPDES Construction Permit

Required for construction disturbing one acre or more. The contractor must prepare a Stormwater Pollution Prevention Plan, install controls, and conduct regular inspections.

Asbestos NESHAP Survey

Before renovation or demolition of a facility, an asbestos survey must identify regulated asbestos-containing material. Removal must follow work-practice standards and be done by trained workers.