MT General Contractor key terms

The individual who meets the experience and examination requirements to hold a contractor license on behalf of a business entity, and whose license status rises and falls with the company's.

The category or scope of work a license authorizes, such as general building, specialty trade, or limited specialty, which restricts what work the licensee may legally contract to perform.

An arrangement allowing a license issued by one jurisdiction to be recognized or expedited in another, typically limited to specific trades and requiring an application rather than automatic acceptance.

Performing or offering work that requires a license without holding one, which can bar recovery of compensation, void contracts, and expose the contractor to civil penalties and criminal sanctions.

A surety instrument submitted with a bid that guarantees the bidder will enter the contract and furnish required bonds if awarded, paying the owner the difference up to the bond amount if the bidder defaults.

A surety agreement protecting the owner if the contractor fails to complete the work according to the contract, typically paying to complete the job or covering the cost of a replacement contractor.

A surety agreement that guarantees payment to subcontractors, laborers, and suppliers on a project, giving claimants a contractual route to recovery in place of or alongside lien rights.

The practice of disclosing one subcontractor's price to competitors to obtain a lower number, which undermines bid integrity and can create disputes over substitution after award.

The process of adjusting competing bids to a common basis by accounting for exclusions, alternates, allowances, and schedule differences so the owner compares equivalent scopes.

A written modification issued before bid opening that changes plans, specifications, or bid requirements, and which bidders must acknowledge in their proposal to remain responsive.

A formal written question from a bidder or contractor seeking clarification of ambiguous drawings or specifications, with the answer documented and distributed to all affected parties.

A written instrument signed by the owner and contractor that modifies the contract scope, price, or time, and which becomes part of the contract once executed.

A contract adjustment arising from an owner's action or direction that alters the work without a formal change order, allowing the contractor to pursue additional compensation or time.

Subsurface or physical conditions materially different from those shown in the contract documents or unusual for the work, which commonly entitle the contractor to an equitable adjustment in price or time.

The stage when the work is sufficiently complete for its intended use so the owner can occupy it, triggering warranty start, retention release, and a punch list of remaining minor items.

A written inventory of incomplete or defective items identified at substantial completion that the contractor must correct before final acceptance and final payment.

The point at which all contract work, including punch list corrections and closeout submittals, is finished and accepted, releasing remaining retention and ending most contractual obligations.

A scheduling technique that models task durations and dependencies to identify the longest continuous sequence of activities, which determines the shortest possible project duration.

The amount of time an activity can be delayed without delaying the project completion date, an important ownership issue when changes or delays affect activities on the critical path.

The approved schedule against which actual progress and delay claims are measured, serving as the reference for updates, time extensions, and performance evaluation.

Shortening the project duration through crashing, which adds resources at extra cost, or fast-tracking, which overlaps activities and increases coordination risk.

A percentage of each progress payment withheld by the owner until completion to protect against defective work and unpaid claims, with statutory limits and release rules in many jurisdictions.

Periodic payment for work completed and materials stored, based on a contractor's application and typically certified by the architect or owner's representative before funds are released.

A subcontract provision making the subcontractor's right to payment contingent on the owner paying the general contractor, which may be limited or void under prompt payment statutes.

A statute setting deadlines for paying construction invoices and allowing interest or penalties for late payment, often with different rules for public and private projects.

A statutory claim against real property securing payment for labor, services, or materials furnished to improve it, enforceable only if strict notice and filing deadlines are met.

A written notice, often required early in a project, informing the owner or lender that a claimant may later assert lien rights, preserving the ability to file a lien.

A document by which a claimant gives up lien rights, either conditionally or unconditionally and either for progress or final payment, in exchange for payment received.

A claim served on an owner or construction lender that directs them to withhold funds owed to the contractor in order to satisfy an unpaid subcontractor or supplier claim.

An individual capable of identifying existing and predictable hazards and authorized to take prompt corrective action, required for tasks such as excavations, scaffolding, and fall protection.

Sloping, benching, shoring, or shielding used to prevent cave-ins in trenches and excavations, selected based on soil type, depth, and adjacent loads.

Categorizing excavated material as stable rock, Type A, Type B, or Type C based on strength and stability, which dictates the protective system and allowable slope.

A structured review that breaks a task into steps, identifies hazards at each step, and specifies controls before work begins, often used to support safety planning and training.

A written, task-specific safety plan prepared before a definable feature of work, identifying hazards, controls, required training, and responsible persons.

Systems and practices, such as guardrails, personal fall arrest, and controlled access zones, used to prevent or arrest falls from elevations and into openings.

A site plan identifying potential pollutant sources and best management practices, including erosion and sediment controls, required for construction disturbing regulated areas.

A structural or nonstructural control, such as silt fence, inlet protection, or sweeping, used to prevent pollutants from leaving a construction site.

A regulatory filing submitted before construction begins that seeks coverage under a general stormwater permit and commits the operator to implement the required pollution controls.

An inspection performed before renovation or demolition of suspect materials to identify and quantify asbestos-containing material, which then must be handled under specific work practices.

Paint containing lead above regulated thresholds, common in older structures, requiring certified workers, containment, and waste handling when disturbed during renovation or demolition.