NV General Contractor key terms

Current assets minus current liabilities. The Board reviews it to confirm a contractor has cash and other short-term resources to pay bills while jobs are in progress; it is a key factor in setting a license's monetary limit.

Tracking income and expenses by individual project rather than only by company totals. It lets a contractor compare actual labor, material, and equipment costs against the estimate and spot overruns before a job ends.

Indirect costs of running the business that cannot be billed to one specific project, such as office rent, insurance, owner salaries, and vehicle upkeep. Overhead must be recovered through markup added to direct job costs.

Markup is the amount added to cost to set a price, expressed as a percentage of cost; margin is profit expressed as a percentage of the selling price, so a 25 percent markup equals only a 20 percent margin.

A percentage of each progress payment that the owner withholds until the work is complete. It protects the owner against unfinished or defective work but reduces the contractor's cash flow and must be tracked and collected.

A forecast of when money will actually come in and go out over the coming weeks or months. Because contractors pay for labor and materials before being paid, the projection reveals periods when cash reserves or credit will be needed.

A surety bond guaranteeing the owner that the contractor will complete the contract per its terms. If the contractor defaults, the surety steps in, typically by funding completion or paying the bonded amount.

A signed document in which a party gives up the right to file a mechanics lien, usually in exchange for payment. Progress waivers cover work to date; final waivers release all remaining lien rights.

The volume of sales at which total revenue equals total costs, producing neither profit nor loss. Contractors use it to see how much work must be sold to cover fixed overhead before any project earns profit.

The state agency that licenses, regulates, and disciplines contractors in Nevada. It sets license classifications and monetary limits, investigates complaints, holds disciplinary hearings, and publishes rules contractors must follow.

The individual who passes the trade and law exams and whose experience and knowledge qualify a business for a Nevada contractor's license. That person must be an owner, officer, or responsible managing employee actively involved in operations.

A full-time employee, not an owner or officer, who serves as the qualifying party for a licensed business. The RME must be regularly employed by the licensee and is the person whose qualifications support the license.

The maximum dollar value of any single contract a licensee may take on, set by the Board based on the contractor's working capital and financial statement. Bidding or working above that ceiling violates licensing law.

A letter category on a Nevada license that defines the type of work the contractor may perform. Class A covers general engineering, Class B general building, and Class C specialty trades, each with subcategories.

A bond filed with the Board, running from $1,000 to $50,000 depending on the license's monetary limit, and funded by the licensee. Parties harmed by certain license law violations may claim against it.

A written notice a subcontractor or supplier must give the owner and lender within 31 days after first furnishing labor, materials, or equipment, warning that lien rights may be asserted if payment is not made.

Performing or offering to perform work that requires a contractor's license without holding a valid one. It is a criminal offense in Nevada, bars the contractor from suing for compensation, and can result in fines and Board action.

A written notice a homeowner or owner must serve on a contractor before suing over an alleged construction defect. It opens a period for inspection and an offer to repair, and filing suit without it can stall the case.

A scheduling technique that identifies the longest chain of dependent activities through a project. Delays on the critical path push the completion date; activities with float can slip without affecting the finish.

A written, signed amendment to the contract that modifies scope, price, or time. Work should not proceed under a change until it is authorized, because unsigned or verbal changes often become payment disputes.

Product data, shop drawings, samples, or certificates the contractor sends to the designer to confirm that proposed materials and methods meet the specification before installation, usually on a required review schedule.

A formal written question to the designer asking for clarification of conflicting, missing, or ambiguous contract documents. Answers are logged and can support a change order or time extension if they affect cost or schedule.

A breakdown of the contract price into line items allocated to portions of the work, submitted before the first progress payment. It is the basis for each month's billing and is matched against measured progress.

A systematic measurement of the materials and work items shown on the drawings, used to build an estimate. Accuracy here drives material pricing and labor hour calculations for the bid.

A reserve of money or time set aside in the estimate or schedule for unknowns such as weather, price swings, and unforeseen conditions. It is not a slush fund but is drawn down only for identified risk events.

A pre-agreed sum stated in the contract that the contractor pays the owner for each day of delay beyond the required completion date, provided the amount is a reasonable forecast rather than a penalty.

The stage at which the work is sufficiently complete for the owner's intended use, even though minor items remain. It typically starts warranty periods, releases most retainage, and shifts risk to the owner.

Under OSHA, someone capable of identifying existing and predictable hazards and authorized to take prompt corrective action. Employers must designate one for activities such as excavations, scaffolding, and fall protection.

Shoring, sloping, benching, or a trench box used to prevent cave-ins in excavations. OSHA requires one for any trench 5 feet or deeper, and for shallower trenches where a competent person finds unstable soil.

Guardrails, personal fall arrest systems, nets, or other measures that stop workers from falling. In construction, OSHA generally requires protection at 6 feet above a lower level, with anchor points and training documented.

An OSHA program requiring employers to inventory hazardous chemicals, keep safety data sheets available, label containers, and train workers to understand the hazards and safe handling of the products they use.

Equipment worn to reduce exposure to workplace hazards, such as hard hats, safety glasses, gloves, high-visibility vests, and respirators. Employers must provide required PPE at no cost and train workers in its use and care.

A site-specific plan required under EPA and Nevada permits for construction disturbing one acre or more, describing best management practices to keep sediment and pollutants out of stormwater during and after construction.

Procedures for isolating and de-energizing equipment before service or maintenance so it cannot be unexpectedly started. Workers apply locks and tags, verify zero energy, and only authorized employees remove them.

Fine respirable dust released when cutting, grinding, or sawing concrete, stone, and masonry. OSHA requires wet cutting, ventilation, or respirators, plus exposure monitoring and medical surveillance when limits may be exceeded.

A space large enough to enter, with limited entry or exit, not designed for continuous occupancy. Construction rules require hazard evaluation, atmospheric testing, attendant monitoring, and permits for permit-required spaces.