Business and Project Management
What this domain tests
This domain tests the business side of roofing: estimating, scheduling, subcontractor management, insurance, cash flow, and documentation. The exam expects you to connect field decisions to contract cost, schedule, and risk.
Core rules and concepts
- A complete estimate includes labor, materials, equipment, disposal, permits, overhead, profit, and contingency. Underestimating tear-off and deck repair is a common failure.
- Schedules must account for weather, material lead times, inspections, and trade sequencing. Roofing cannot proceed over an unsafe or incomplete deck.
- Subcontractors should be prequalified: verify licensing where required, workers’ compensation coverage, general liability insurance, and safety history.
- Change orders must be written, priced, and signed before work proceeds. Verbal changes invite payment disputes.
- Cash flow depends on progress billing, retainage, and prompt payment. Track receivables and lien rights.
- Keep daily logs, photos, delivery tickets, and inspection records. Documentation is the project’s memory.
Worked example
A homeowner asks the crew to replace rotten sheathing discovered after tear-off. The project manager photographs the area, measures the square footage, prices the work using the contract’s unit rate, and issues a written change order. Work waits for the homeowner’s signature. The daily log records the discovery, the photos, and the delay. This protects the contractor’s schedule and payment claim.
Traps that cost marks
Performing verbal extras; failing to verify subcontractor insurance; underestimating disposal costs; scheduling roofing before inspections; and letting retainage and receivables go untracked.
Key points
- Estimates need contingency for hidden damage.
- Change orders must be written and signed.
- Prequalify subcontractors for insurance and licensing.
- Weather and inspections drive the schedule.
- Daily documentation supports payment and defenses.