TN General Contractor cheat sheet

Accounting equation: assets = liabilities + owner's equity; each transaction affects at least two accounts.

Current ratio = current assets ÷ current liabilities; a value below 1.0 means near-term assets cannot cover near-term obligations.

Working capital = current assets − current liabilities.

Gross profit = revenue − cost of goods sold; gross margin % = (gross profit ÷ revenue) × 100.

Selling price = cost ÷ (1 − target margin %); markup % = (price − cost) ÷ cost. A 20% markup is only a 16.7% margin.

Straight-line depreciation = (cost − salvage value) ÷ useful life in years.

Percentage-of-completion revenue = total contract price × (costs incurred to date ÷ total estimated costs).

'Costs and estimated earnings in excess of billings' is a current asset; 'billings in excess of costs' is a current liability.

A sole proprietor reports business income on personal returns and carries unlimited personal liability; corporations and LLCs shield owners' personal assets.

A valid contract requires offer, acceptance, consideration, capacity, and a lawful purpose.

Statute of Frauds requires a writing for contracts that cannot be performed within one year and for promises to answer for another's debt.

Constructive change: owner-directed or owner-caused work treated as a change even though no written change order was issued.

Cardinal change: a deviation so far beyond the contract scope that it is a breach rather than an ordinary change.

Pay-if-paid makes owner payment a condition precedent to subcontractor payment; pay-when-paid is only a timing mechanism.

Differing site conditions: Type I is a subsurface or latent physical condition materially different from the contract documents; Type II is an unknown physical condition of an unusual nature.

Substantial completion starts warranties, permits owner occupancy, and commonly starts the limitations period for claims.

Flow-down (incorporation by reference) clauses pass prime-contract duties and remedies to subcontractors and suppliers.

The Tennessee Contractors Licensing Act is codified at TCA Title 62, Chapter 6, and is administered by the Board for Licensing Contractors.

A contractor license is required for projects of $25,000 or more in total cost; projects from $3,000 to $24,999 require a home improvement license.

A license is issued to an entity only through a qualifying agent (designated qualifier) who passes the required examinations and remains actively involved.

Each license carries a monetary limit per single project; contracting or bidding above that limit is a licensing violation.

The license number must appear on bids, contracts, permits, and advertising.

The license must already be held before bidding on work that requires a license.

The Board may issue citations and civil penalties, suspend or revoke a license, and order restitution to consumers.

Changes of qualifying agent must be reported to the Board; loss of the qualifier jeopardizes the entity's license.

A mechanic's lien is recorded in the Register of Deeds of the county where the improved property is located.

The lien instrument must state the amount claimed, owner's name, property description, claimant's name, and the date labor or materials were last furnished.

An enforcement suit on a recorded Tennessee mechanic's lien must be filed within the statutory period (generally six months after recording).

Liens do not attach to public property; public works are protected instead by payment bonds under Little Miller Acts.

The federal Miller Act requires payment and performance bonds on federal construction contracts over $150,000.

A Miller Act claimant must give written notice to the surety within 90 days after last furnishing and sue within one year.

Four lien waiver forms: conditional progress, unconditional progress, conditional final, unconditional final.

A conditional waiver takes effect only upon actual receipt of the funds stated in the waiver.

OSHA 29 CFR 1926 governs construction; fall protection is required at 6 ft in construction (4 ft in general industry).

Excavations 5 ft or deeper require a protective system; excavations 20 ft or deeper require design by a registered professional engineer.

A competent person must inspect excavations, scaffolds, and fall-protection systems daily and after rain or any hazard-changing event.

Spoil and equipment are kept at least 2 ft back from the excavation edge; a ladder must be within 25 ft of lateral travel for egress.

Report to OSHA: a fatality within 8 hours; an in-patient hospitalization, amputation, or loss of an eye within 24 hours.

Recordable injuries must be entered on the OSHA 300 log within 7 days of learning of them.

Tennessee requires workers' compensation coverage for employers with 5 or more employees, and the state is a right-to-work state.

Hazard Communication: a safety data sheet must be available for every hazardous chemical on site, and employees must be trained.

Bid price = direct costs + project indirect costs + company overhead + contingency + profit.

Bid bond is typically 5–10% of the bid; performance and payment bonds are typically 100% of the contract amount.

Every addendum must be acknowledged in the bid and becomes part of the contract documents.

Total float = late start − early start, which equals late finish − early finish.

The critical path is the longest-duration path through the network; it has zero total float and sets project duration.

Crashing shortens duration by adding resources to critical-path activities; fast-tracking overlaps activities or phases.

Quantity takeoff measures net quantities from the drawings, then adds a waste factor by material type (commonly 5–10%).

Unit-price estimating = quantity × unit cost of labor, material, and equipment, plus markup.

Structural fill is typically compacted to 95% of maximum dry density per the Standard Proctor test (ASTM D698).

Bank volume is converted to loose volume with the soil swell factor; loose to compacted uses the shrinkage factor.

Footings must bear on undisturbed soil below the frost line and, where possible, above the water table.

OSHA excavation slopes: Type A 3/4:1, Type B 1:1, Type C 1.5:1; steeper cuts require shoring or shields.

Dewatering options include sumps and ditches, wellpoints, and deep wells; discharge may require a permit.

Silt fence and other erosion controls are installed before grading, with a stabilized construction entrance at the site access.

Balancing cut and fill minimizes haul cost; compare net earthwork volumes before finalizing grades.

The slump test (ASTM C143) measures consistency; specified slump tolerances are typically ±1 to ±2 in.

Concrete reaches design strength at 28 days; 7-day strength is roughly 75% of the 28-day strength.

A lower water-cement ratio increases strength and durability but reduces workability; admixtures are used to compensate.

Air entrainment of roughly 4–8% provides resistance to freeze-thaw damage.

Moist curing for a minimum of 7 days is typical for Type I cement concrete.

Mortar types in descending compressive strength are M, S, N, and O; Type S is common for structural and below-grade masonry.

Masonry walls require flashing and weep holes at the base of the cavity to drain water to the exterior.

High-strength structural bolts are A325 and A490; welding follows AWS D1.1 with qualified procedures and inspection.

Asphalt shingles require a minimum slope of 2:12 with double underlayment; 4:12 and steeper is the standard application.

Ice-dam membrane is required at eaves where ice damming occurs, extending at least 24 in. inside the warm wall line.

Weather-resistive barriers and flashing are installed shingle-fashion so upper courses overlap lower courses.

Roof sheathing panel edges must be supported; 7/16-in. OSB is limited to 24 in. on center for roof decks.

The vapor retarder goes on the warm (interior) side of the insulation in cold climates; air sealing precedes insulating.

Framing notches and bored holes are limited by code: notches are restricted on the tension side and holes must be centered.

Attic ventilation is commonly 1/150 of the vented ceiling area, reduced to 1/300 where a vapor retarder is installed.

Three-phase quality control uses preparatory, initial, and follow-up inspections for each definable feature of work.

RFIs document design questions; submittals verify materials and equipment before installation.

Substantial completion means the work is usable for its intended purpose, and the punch list is issued at that point.

Final payment follows punch-list completion, final lien waivers, and delivery of closeout documents.

Closeout package: as-built drawings, O&M manuals, warranties, test reports, spare parts, and attic stock.

The schedule of values allocates the contract price to work items and drives the amount of each progress payment.

Retainage is released per the contract, with final payment conditioned on a final waiver and contractor's affidavit.