TN General Contractor flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Current ratio

Current assets divided by current liabilities. It measures whether short-term assets can cover short-term obligations, and a value below 1.0 signals possible liquidity problems.

Working capital

Current assets minus current liabilities. Positive working capital indicates the firm can fund day-to-day operations; negative working capital means it relies on credit to operate.

Markup versus margin

Markup is a percentage added to cost, while margin is a percentage of the selling price. Selling price equals cost divided by one minus the target margin.

Percentage of completion method

An accounting method that recognizes revenue and gross profit in proportion to costs incurred to date divided by total estimated costs, used for long-term construction contracts.

Constructive change

Work the owner directs orally or implies through conduct that falls outside contract scope but is never formalized in a change order; it may still be compensable.

Pay-if-paid clause

Contract language making the owner's payment to the prime contractor a condition precedent to paying the subcontractor, shifting the risk of owner nonpayment to the subcontractor.

Substantial completion

The stage at which work is sufficiently complete for its intended use, triggering warranty start, occupancy rights, retainage release rights, and claim limitation periods.

Differing site conditions

Subsurface or latent physical conditions materially different from the contract documents, or unknown physical conditions of an unusual nature, entitling the contractor to an adjustment.

Qualifying agent

The individual who passes the licensing examinations and is designated to qualify a contracting entity before the Tennessee Board; the license depends on maintaining that qualifier.

Tennessee licensing threshold

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

Monetary limit

The maximum single-project dollar value a licensed contractor is authorized to perform; bidding or contracting above that limit violates Board rules and can bring penalties.

Mechanic's lien

A statutory claim recorded against real property by a party that furnished labor or materials, giving that party a security interest in the improved property until it is paid.

Miller Act payment bond

Federal law requiring payment and performance bonds on federal construction contracts over $150,000, protecting subcontractors and suppliers who cannot lien government property.

Conditional versus unconditional waiver

A conditional lien waiver becomes effective only when the stated payment actually clears; an unconditional waiver is effective on signing regardless of whether payment is received.

Notice to surety

Under the Miller Act a claimant must give written notice to the surety within 90 days after last furnishing labor or materials, then file suit within one year.

Competent person

An OSHA-defined individual who can identify existing and predictable hazards and is authorized to take prompt corrective action; required for excavation, scaffold, and fall-protection inspections.

Fall protection trigger height

OSHA construction standards require fall protection at 6 feet or more above a lower level, and for employees working in excavations 6 feet deep or more.

Excavation protective system

Trenches 5 feet deep or more require sloping, shoring, shielding, or benching; excavations 20 feet or deeper require a protective system designed by a registered professional engineer.

Total float

The time an activity can be delayed without delaying project completion; calculated as late start minus early start, or late finish minus early finish.

Critical path

The longest-duration chain of dependent activities through a schedule network. It has zero total float and determines the shortest possible project duration.

Bid bond

A bond submitted with a bid, typically 5 to 10 percent of the bid amount, guaranteeing the bidder will sign the contract and furnish required bonds if awarded the work.

Addendum

A written modification to bidding documents issued before bid opening. Bidders must acknowledge each addendum in their bid, and it becomes part of the contract.

Standard Proctor test

A laboratory test finding the maximum dry density and optimum moisture content of soil; field compaction is normally specified as a percentage of that maximum density.

Soil swell factor

The percentage volume increase when soil is excavated and loosened; used to convert bank cubic yards into loose cubic yards for hauling and truck counts.

Frost line footing depth

The depth to which groundwater freezes in winter. Footings must bear below this depth to prevent frost heave, and local codes set the required depth.

Slump test

ASTM C143 field test measuring concrete consistency by the settlement of a standard cone sample; a higher slump indicates a wetter, more workable mix.

Water-cement ratio

The weight of water divided by the weight of cementitious material in a mix. Lower ratios raise strength and durability but reduce workability.

Type S mortar

A cement-lime mortar with high bond strength and moderate compressive strength, commonly specified for masonry below grade and for structural unreinforced walls.

Ice dam membrane

A self-adhering waterproof underlayment installed at eaves and valleys under roofing to stop water backup from ice dams; required by code where ice damming occurs.

Minimum shingle slope

Asphalt shingles generally require a roof slope of at least 2:12 with double underlayment; slopes below that require a different roofing system.

Vapor retarder location

In cold climates the vapor retarder is placed on the warm interior side of the insulation; installing it on the cold side can trap moisture within the assembly.

Punch list

A list of incomplete or defective items compiled near the end of a project; the items must be corrected before final payment and release of retainage.