MS General Contractor key terms

A business owned and operated by one person with no separate legal entity; the owner reports business income on personal taxes and is personally liable for all debts and claims.

A state-chartered business form that separates owners from company liabilities; profits pass through to members' personal tax returns unless corporate taxation is elected. Mississippi requires registration with the Secretary of State.

An agreement in which two or more firms combine resources and share risk on a single project. It may be a separate entity or a contractual collaboration and usually ends at project closeout.

Current assets minus current liabilities; it measures the cash and near-cash a contractor has to fund payroll, materials, and overhead between progress payments. Thin working capital is a common cause of construction failure.

A surety instrument submitted with a bid that guarantees the bidder will enter the contract and furnish required bonds if selected. If the bidder defaults, the surety pays the owner up to the stated penalty.

A surety bond protecting the owner if the contractor fails to complete the work according to the contract. The surety must finish the job or pay the owner's cost of completion, up to the bond amount.

A surety bond guaranteeing the contractor will pay subcontractors, suppliers, and laborers. It gives unpaid claimants a route to recover from the surety when the contractor defaults on payment obligations.

A Mississippi credential issued by the State Board of Contractors that lets a firm bid on and perform construction contracts above the statutory threshold. It records the contractor's classification and board-approved contract limit.

The state agency that licenses general and specialty contractors, administers the certificate of responsibility, investigates complaints, and can suspend or revoke a contractor's right to bid or work in Mississippi.

A written modification signed by the owner and contractor that changes contract scope, price, or time. Without a signed change order, disputed work is harder to collect and may become a constructive change claim.

The stage at which work is sufficiently complete for its intended use so the owner can occupy it. It usually starts warranty periods, shifts insurance responsibility, and reduces retainage.

A statutory claim against real property that secures payment for labor, materials, or services that improved the property. Filing and enforcement deadlines are strict and vary by state.

A document in which a claimant gives up lien rights, usually in exchange for payment. Conditional waivers take effect only when payment clears; unconditional waivers take effect on signing.

A contract clause where one party agrees to cover the other's losses or claims arising from specified events. Broad clauses may be limited by state anti-indemnity statutes, especially for a party's own negligence.

A subcontract provision making the subcontractor's payment due only after the owner pays the general contractor. Courts often interpret it narrowly, and some states limit its enforceability.

Work the contractor is directed to perform, or must perform, that differs from the contract but was never formalized through a change order. It can support a claim for extra cost or time.

A scheduling technique that links tasks by logic and duration to identify the longest path through the project. Activities on that path have no slack and drive the completion date.

The amount of time an activity can slip without delaying project completion. Weather, owner changes, and sequencing affect float, and contracts may specify who owns it.

The approved project schedule against which actual progress is measured. It supports delay analysis and is typically updated monthly while the original baseline stays frozen for comparison.

A short-interval schedule, often two to four weeks, prepared by the superintendent to plan crews, materials, and equipment in detail. It rolls forward weekly and supports the master schedule.

A list of minor incomplete or defective items identified near substantial completion. The contractor must correct them before final payment and final acceptance are granted.

A written question from the contractor to the design team asking for clarification of unclear drawings or specifications. Responses become part of the contract record and may lead to change orders.

Shop drawings, product data, samples, or mock-ups the contractor sends for the designer's review to confirm the work will meet the specifications. Review time is often a contract milestone.

An itemized breakdown of the contract sum by work category, used to support progress payments. Each pay application bills against the completed percentages listed in the schedule.

A systematic measurement of the materials and work items shown on the drawings, used to price a project. Errors here carry through the entire estimate, so careful checking is essential.

A contract with a fixed total price for a defined scope of work. The contractor absorbs cost overruns unless the scope changes through a change order.

A contract that pays a set amount per unit of work actually performed, such as per cubic yard of excavation. It is common where quantities are uncertain at bidding.

A written change to the bidding documents issued after drawings and specifications are released and before bids are opened. Contractors must acknowledge addenda in their bids.

Specific changes in scope, materials, or methods priced separately in a bid so the owner can accept or reject them. They let the owner compare options before awarding the contract.

A reserve in the estimate or budget for known risks and unknowns. It is drawn down with owner approval and tracked against specific exposures rather than treated as spare cash.

A specification that states the required result or function and leaves means and methods to the contractor. Prescriptive specifications, by contrast, dictate products and installation details.

Under OSHA, someone capable of identifying hazards and authorized to take prompt corrective action. Construction standards require one for excavations, scaffolding, and fall protection.

A pre-task review that breaks a job into steps and identifies hazards and controls for each. Supervisors use it to plan safe work and brief the crew.

Systems and practices that prevent workers from falling from heights, such as guardrails, personal fall arrest, and safe access. OSHA requires protection above six feet in construction.

A form from an insurer or broker summarizing a policy's coverage limits and dates. It is evidence of coverage, not the policy itself, and creates no contractual rights by itself.

Property coverage for a project under construction, including materials, equipment, and sometimes soft costs. It typically covers fire, wind, theft, and other listed perils until completion.

The monthly billing package a contractor submits to request progress payment, including the schedule of values, stored materials, and lien waivers. The architect or owner certifies it before payment.

A weekly payroll report required on federally funded projects showing each worker's classification, hours, and wages. It demonstrates compliance with prevailing wage and overtime rules.

The minimum wage and benefit rates set by law for workers on public projects, based on local labor market surveys. Contractors must pay these rates and document them.

A site plan required under NPDES permits that describes erosion controls, sediment barriers, and inspection procedures to keep construction runoff out of waterways.