Business, contracts, safety, and project management
Domain 8 tests business practices, Nevada contract and lien basics, jobsite safety, and project controls.
Contracts and money
Use a written contract with scope, price, payment schedule, schedule, license number, exclusions, warranty, and a change-order process. Verbal changes are a common dispute source. In Nevada, mechanics' lien and preliminary-notice deadlines are strict; missing them can eliminate recovery rights. Know markup versus margin: markup is added to cost; margin is a percentage of selling price.
Worked example
A job costs $10,000. A 20% markup gives a price of $10,000 × 1.20 = $12,000, which is a 16.7% margin ($2,000 ÷ $12,000). To achieve a 20% margin, divide cost by (1 − 0.20): $10,000 ÷ 0.80 = $12,500. Confusing the two underprices the job and erodes overhead and profit.
Safety and project management
Follow OSHA 1926 requirements: fall protection at 6 ft, ladders at a 4:1 slope, lockout/tagout, PPE, and safe handling of refrigerants and brazing torches. Use permits for hot work and confined spaces. Manage submittals, RFIs, schedules, inspections, punch lists, and closeout documents. Keep jobsite records and daily reports.
Traps that cost marks
Do not work without a written change order, ignore lien deadlines, confuse markup with margin, skip lockout/tagout, or treat safety as paperwork. Poor closeout documentation delays final payment.