MT General Contractor cheat sheet

Sole proprietorship: owner and business are one legal person; business income is taxed on the owner's personal return via Schedule C, and the owner bears unlimited personal liability for business debts and judgments.

General partnership: each partner is jointly and severally liable for partnership obligations; a written partnership agreement should state capital contributions, profit split, management authority, and buyout terms.

Limited liability company: members' liability is generally limited to their investment, but commingling funds or failing to observe formalities can support alter-ego/piercing claims.

S corporation: profits pass through to shareholders, but the entity must meet IRS eligibility rules (limited number and type of shareholders, one class of stock); an LLC can elect S status.

Contractor licensing is a state function; typical requirements are a qualifying party/qualifier exam, proof of financial responsibility (net worth or surety bond), and annual renewal.

Qualifying party rules: the individual who passed the trade or business exam must be actively engaged in the business; losing the qualifier usually triggers a deadline to designate a replacement before the license lapses.

Bidding as an unlicensed contractor or contracting outside the licensed classification can render a contract unenforceable and subject the firm to civil penalties and stop-work orders.

Joint ventures combine bonding capacity and experience; define each party's scope, share of profits, and liability, and confirm the combined entity can obtain a performance bond.

A contract requires offer, acceptance, consideration, and legal purpose; the mutual intent to be bound distinguishes an enforceable contract from a preliminary agreement to agree.

The written contract documents form the contract hierarchy: agreement, general conditions, supplementary conditions, specifications, and drawings; the agreement usually controls, and specifications typically control over drawings for quality, drawings for quantity.

A material breach excuses the non-breaching party from further performance and permits damages; a minor breach still allows the owner to recover the cost to cure.

Changed conditions (differing site conditions): a Type I differs materially from the contract documents, a Type II is an unknown physical condition of an unusual nature; both typically require written notice before disturbing the condition.

Constructive changes arise from owner acts or directives (e.g., overzealous inspection, defective specifications); they are compensable through a change order or claim even without a formal written change.

Pay-when-paid clauses delay payment to a subcontractor until the owner pays the contractor; pay-if-paid clauses make owner payment a condition precedent and are void or restricted in many states.

Notice and claim deadlines are strictly enforced: a typical clause requires notice within 7-21 days of the event and a detailed claim within 30-60 days, with failure waiving the claim.

Flow-down clauses apply prime contract terms (disputes, insurance, indemnity) to subcontracts; back-to-back terms pass risk to the subcontractor.

Quantity takeoff: measure each item per the specification's measurement rules, then price with material, labor, and equipment unit costs; the unit price times quantity produces the extended cost.

Contingency is added as a percentage of base estimate cost; typical ranges are 5-10% for well-defined work at design-bid-build, 10-20% for schematic-level estimates.

Bid-day math: total bid = direct costs + indirect costs (supervision, temporary facilities, permits) + overhead + profit + bonds and insurance; markup is applied to the chosen base, so state the base explicitly.

Bond costs: performance and payment bonds are typically priced as a rate per $1,000 of contract value on a tiered schedule, not a flat percentage of the total bid.

Balanced bidding prices each unit item at its actual cost; unbalanced bidding front-loads early items or inflates quantities likely to increase, which can be rejected as materially unbalanced.

Addenda issued during the bid period become part of the contract documents; the bidder must acknowledge each addendum on the bid form or risk a nonresponsive bid.

Bid responsiveness vs. responsibility: responsiveness is whether the bid conforms to the invitation (forms, bonds, addenda acknowledgment); responsibility is the bidder's capacity, experience, and financial fitness.

Common bid errors: transposed digits, omitted subcontractor scope, misapplied labor rates, and failure to add sales tax or bond cost; a mistake discovered before bid opening can be corrected, after opening the rules depend on the state and whether the error is clerical.

Critical path method: the critical path is the longest path through the network and has zero total float; delaying any critical activity delays project completion by the same amount.

Total float = late start - early start (or late finish - early finish); free float is the time an activity can slip without delaying the early start of any successor.

Forward pass computes early start/finish; backward pass computes late start/finish; the difference between early and late dates is float.

Schedule compression: crashing adds resources to critical activities at increased cost; fast-tracking overlaps activities that were sequential and increases coordination risk.

A time-scaled bar chart or Gantt chart shows duration and sequence but not logic relationships as clearly as a network diagram; use the network for float analysis.

Progress measurement: percent complete by cost or by earned value; earned value metrics are CPI = EV/AC and SPI = EV/PV, with values below 1.0 indicating cost or schedule problems.

Delay types: excusable (owner or force majeure, time only), compensable (owner-caused, time and money), and non-excusable (contractor-caused, no time or money).

Concurrent delay: overlapping excusable and contractor-caused delay generally defeats a time extension only to the extent the contractor caused the overall delay; document daily to support the analysis.

Submittal log management: track shop drawings, product data, and samples with review periods built into the schedule; a late submittal return by the architect can support a time extension if it delays the critical path.

Fall protection: in construction, employees exposed to falls of 6 feet or more must be protected by guardrail systems, safety net systems, personal fall arrest, or a fall protection plan where permitted.

Scaffold rules: each platform is fully planked, guardrails are required at 10 feet or more, and the scaffold must be erected and modified only under the supervision of a competent person.

Excavation: a competent person must inspect trenches daily and after rain; protective systems (sloping, shoring, shielding) are required at 5 feet or deeper, and at any depth where a hazard exists.

Ladders: portable ladders must extend 3 feet above the landing for access; maintain a 4:1 setup angle, and do not use the top step of a stepladder.

Hazard communication: maintain a written program, Safety Data Sheets for each hazardous chemical, labeled containers, and employee training on the new GHS labels and pictograms.

Recordkeeping: OSHA 300 log entries are required for work-related fatalities (report within 8 hours) and in-patient hospitalizations, amputations, or eye loss (report within 24 hours).

Competent person vs. qualified person: a competent person is capable of identifying hazards and authorized to take prompt corrective action; a qualified person has a recognized degree, certificate, or professional standing.

Personal protective equipment: hard hats, eye protection, and high-visibility garments where required; hearing protection is required when noise exposure exceeds an 8-hour time-weighted average of 85 dBA.

Concrete strength: compressive strength is specified at 28 days; the water-cementitious ratio controls strength and durability, with lower w/c producing higher strength and lower permeability.

Concrete slump measures workability; a typical structural range is 4-6 inches, and admixtures (air entrainment, retarders, superplasticizers) modify workability, freeze-thaw resistance, or set time.

Structural steel connections: bolted connections use A325 or A490 high-strength bolts tensioned to a specified pretension; welded connections require qualified welders and procedure specifications.

Masonry: mortar joints, flashing, and weep holes control water penetration; reinforcement (joint reinforcement or grout and rebar) controls cracking and provides lateral strength.

Wood framing: moisture content affects shrinkage and strength; pressure-treated lumber is required where wood contacts concrete or soil, and fasteners must be compatible to avoid corrosion.

Thermal and moisture control: continuous insulation, air barriers, and vapor retarders must be placed correctly relative to the dew point to avoid condensation within the assembly.

Roofing: low-slope roofs typically use built-up, modified bitumen, or single-ply membranes; slope must meet the manufacturer's minimum, and flashing details at penetrations govern leak performance.

Inspection and testing: concrete cylinders are sampled per ASTM C172 and tested per C39; field density of compacted fill is verified by nuclear gauge or sand cone per ASTM D1556/D6938.

Soil classification: granular soils (sand, gravel) drain well and are less frost-susceptible; cohesive soils (clay, silt) hold water and are classified for excavation by OSHA into Stable Rock, Type A, B, and C.

Swell and shrinkage: excavated bank volume expands when loosened (swell) and compacts to less than bank volume (shrinkage); convert bank, loose, and compacted volumes using these factors when pricing haul.

Trench protection: slope at 3/4:1 (H:V) for Type A, 1:1 for Type B, and 1 1/2:1 for Type C in the OSHA tables; spoil piles and equipment must be kept at least 2 feet from the edge.

Dewatering: control groundwater with sumps, wellpoints, or deep wells before excavation; discharge requires a permit and sediment control under the NPDES construction general permit.

Erosion and sediment control: silt fence, sediment basins, and stabilized construction entrances must be installed before grading; inspection is required after each rain event.

Concrete placement: do not drop concrete more than 3-4 feet freely; consolidate with vibrators without over-vibration, and cure (moist cure or curing compound) to develop design strength.

Cold and hot weather concreting: protect concrete below 40°F, and in hot weather control evaporation with fogging, windbreaks, or retarders to prevent plastic shrinkage cracking.

Formwork and shoring: remove forms only when concrete has attained sufficient strength (often 70% of design for slabs); reshoring transfers loads until the member can carry them.

Mechanics' lien: a contractor, subcontractor, or supplier who furnishes labor or materials to improve real property may claim a lien; the right is created by statute and varies by state.

Preliminary notice: many states require a pre-lien notice (e.g., 20-day notice) to the owner and lender within a set period after first furnishing; missing it can forfeit lien rights.

Lien deadlines: a lien must be recorded within a statutory period after last furnishing (commonly 60-120 days) and then foreclosed within a set period (often 90 days to one year); strict compliance is required.

Payment bonds on public work substitute for lien rights against public property; a claimant must give notice and file a claim within the Miller Act or state mini-Miller Act deadlines.

Retainage: typically 5-10% withheld from each progress payment; many states regulate retainage and require its release within a set time after substantial completion.

Risk transfer: indemnity clauses, additional-insured endorsements, waivers of subrogation, and builder's risk policies allocate loss; be careful with broad-form indemnity that may be void by anti-indemnity statute.

Insurance basics: general liability covers third-party bodily injury and property damage; builder's risk covers the work itself during construction; workers' compensation is statutory and not a substitute for liability coverage.

Bond types: bid bond guarantees the bidder will enter the contract; performance bond guarantees completion; payment bond guarantees subcontractors and suppliers are paid.

NPDES construction general permit: applies to disturbances of 1 acre or more (or less than 1 acre if part of a larger common plan); requires a Stormwater Pollution Prevention Plan (SWPPP) and best management practices.

SWPPP contents: site description, anticipated pollutants, erosion and sediment controls, good housekeeping, inspection schedule, and trained personnel; inspections are required at least weekly and after significant rain.

Hazardous waste: generators are classified by monthly output (very small, small, large quantity); manifest tracking (EPA Form 8700-22) accompanies shipments, and storage time limits apply.

Asbestos and lead: renovation or demolition of pre-1980 buildings may require an asbestos inspection before disturbance; lead-based paint rules apply to pre-1978 housing and child-occupied facilities.

Wetlands and waters: Section 404 of the Clean Water Act requires a permit from the Corps of Engineers before discharging dredged or fill material into jurisdictional waters.

Air quality: dust control (watering, stabilized access) and equipment idling limits are common permit conditions; diesel emissions rules apply to off-road equipment in many states.

Spill prevention: an SPCC plan is required for facilities storing more than 1,320 gallons of oil in aboveground containers (with certain aggregation rules); secondary containment and inspection records are required.

Recordkeeping and reporting: maintain manifests, inspection logs, training records, and permit files; many permits require annual reports and notification of changes in operations.

NPDES construction general permit: applies to disturbances of 1 acre or more (or less than 1 acre if part of a larger common plan); requires a Stormwater Pollution Prevention Plan (SWPPP) and best management practices.

SWPPP contents: site description, anticipated pollutants, erosion and sediment controls, good housekeeping, inspection schedule, and trained personnel; inspections are required at least weekly and after significant rain.

Hazardous waste: generators are classified by monthly output (very small, small, large quantity); manifest tracking (EPA Form 8700-22) accompanies shipments, and storage time limits apply.

Asbestos and lead: renovation or demolition of pre-1980 buildings may require an asbestos inspection before disturbance; lead-based paint rules apply to pre-1978 housing and child-occupied facilities.

Wetlands and waters: Section 404 of the Clean Water Act requires a permit from the Corps of Engineers before discharging dredged or fill material into jurisdictional waters.

Air quality: dust control (watering, stabilized access) and equipment idling limits are common permit conditions; diesel emissions rules apply to off-road equipment in many states.

Spill prevention: an SPCC plan is required for facilities storing more than 1,320 gallons of oil in aboveground containers (with certain aggregation rules); secondary containment and inspection records are required.

Recordkeeping and reporting: maintain manifests, inspection logs, training records, and permit files; many permits require annual reports and notification of changes in operations.