Connecticut Business and Law Exam

Key Concepts

Purpose and scope. Licensing establishes entrance requirements, standards of practice, and disciplinary authority to protect the health, safety and welfare of the public from unqualified, incompetent and unethical contractors (Ch. 3, p. 3-1). Performance bonding is not one of these elements.

Division structure. The Occupational & Professional Licensing Division directly licenses or registers and regulates interior designers, mechanical contractors, mobile manufactured home parks and athlete agents (p. 3-2). Other occupations (landscape architects, home inspectors, professional engineers) are regulated through their own boards administered by the Division. CGS Sec. 20-331(a) creates separate examining boards for only six trades: electrical; plumbing and piping; heating, piping, cooling and sheet metal; elevator; fire protection sprinkler; automotive glass and flat glass. Irrigation licenses are issued upon authorization of the…

Source: NASCLA Contractors Guide, Chapter 7, Bidding and Estimating

Key Concepts

Bid Documents (Ch. 7, Bid Documents section) - A competitive bid package often includes: an invitation to bid (brief overview, deadlines, general requirements); bid instructions (how the bid is completed and submitted); bid forms (bid sheet, bid schedule, bidder's questionnaire on experience/financial responsibility and capability, copy of the contract); and supplements (items important to the overall bid process such as a property survey and soil analysis). - A bidder can be found unresponsive if information is incorrectly submitted or omitted altogether. - Pre-bid meetings may be scheduled, especially for larger projects; project specifications and any changes to the bid package are discussed there. - If changes are made to a bid package **before it is…

Key Concepts

What a lien is and why it matters. Mechanic's and materialmen's liens "cloud" the title to real property and can be an effective method — and sometimes the only method — of securing payment for labor or materials used in the improvement of real property. The lien stops the owner from selling with clear title, and it may be foreclosed in a lawsuit in which the court orders the property sold and the proceeds used to pay the contractor, subcontractor, laborer or material supplier. This may be true even if the owner has already paid a general contractor, meaning the owner may have to pay twice (Chapter 16, Page 16-1).

Key Concepts

• Bookkeeping is the first step in the accounting process — the accurate recording of all financial transactions; financial statements are derived from this information (Chapter 14, Bookkeeping, Page 14-1). Tips include keeping a separate business checking account, keeping and identifying all receipts, recording expenses when they occur, avoiding cash payments to preserve a paper trail, balancing the checking account monthly, and keeping financial records for the time designated by the IRS.
• The accounting cycle repeats each reporting period: (1) classifying and recording transactions, (2) posting transactions, (3) preparing a trial balance, (4) preparing an adjusted trial balance, (5) preparing financial statements, (6) analyzing financial statements (The Accounting Cycle, Page 14-1).
• Chart of accounts numbering (Page 14-2): 1000–1999 Assets; 2000–2999 Liabilities; 3000–3999…

Key Concepts

Connecticut business income tax (Pages 15-8, 15-9) - Sole proprietors: If you expect to owe more than $500 in Connecticut income tax for the year, in addition to any CT tax withheld from other earnings or a pension, make estimated payments on Form CT-1040ES — generally four equal installments due April 15, June 15, September 15, and January 15. The return is due on or before the fifteenth day of the fourth month after the close of the taxable year (April 15 for most). Residents use Form CT-1040/CT-1040EZ; nonresidents and part-year residents use CT-1040NR/PY. - Partnerships: File Form CT-1065 annually if there is income from Connecticut sources. The partnership is not subject to Connecticut income tax; partners report their distributive share on a CT…

Key Concepts

Connecticut wage and hour laws - Pay frequency: Each employer must pay weekly all moneys due each employee on a regular payday designated in advance. The weekly pay requirement may be waived only when the Labor Commissioner, upon application by the employer, permits paydays less frequently than weekly — employee consent alone does not authorize the change. (CT Business and Law Manual, Ch. 11 — Connecticut Wage and Hour Laws, Waiver of Weekly Pay Requirement) - Termination pay: An employee who voluntarily terminates or is laid off must be paid on the next regular payday; an employee who is discharged is due all wages on the next business day. (Ch. 11 — Connecticut Wage and Hour Laws, Payment on Termination) - Wage withholding forms:…

NASCLA Contractors Guide to Business, Law and Project Management — Connecticut, 6th Edition, Chapter 9: Scheduling and Project Management

Key Concepts

Scheduling Process (Ch. 9, Scheduling Process section) - The project start and completion dates are outlined in the contract; the scheduler must fit all necessary tasks within that time frame. - Sequence of tasks: some tasks run at the same time, others must precede the next (interior and exterior paint may be applied at the same time, but drywall must be completed before paint is applied). - Activity duration depends on size of the project, labor hours estimated, and length of time dedicated to the task each day. - If total time exceeds the contract completion time, consider increasing labor resources, requiring overtime, or extending…

NASCLA Contractors Guide — Chapter 8: Contract Management

Key Concepts

Required Contract Elements (Chapter 8, Required Contract Elements): Four key elements must be in effect to make a contract binding: offer and acceptance, consideration, competent parties, and legal purpose.

• Offer and acceptance — An offer outlines the obligations, including work to be done and compensation. Submitting an estimate or bid is an offer. An offer generally has a specific time for acceptance; this time frame is typically 30 days, but it should be stated in the offer. If no deadline is stated, it expires in a "reasonable time," which is up to court interpretation. Acceptance is generally done by signing the offer. A counteroffer is not considered acceptance.
• Consideration — Both parties must give…

Key Concepts

C Corporations (Choosing Your Business Structure — C Corporations, Page 2-3) - A business assumes a corporate identity in Connecticut when it files as a corporation with the Connecticut Secretary of State. Incorporation gives the business a legal existence; it can own assets and conduct business in its own name, and it continues to exist even if one or more shareholders die. - Liability: Owners, known as stockholders, are not personally liable for the losses of the business. Generally, the corporate entity is responsible for business debts. - Double taxation: "The corporation must file income tax returns and pay taxes on the profits. Dividends paid to shareholders by the corporation are also taxed to each shareholder individually. That is why there is said to…

Subtopics: Employment-related insurance (workers' compensation, unemployment, social security); Federal and Connecticut state bonding laws (Miller Act, Little Miller Act)

Key Concepts

Workers' compensation insurance (Managing Risk — Employment-Related Insurance, Page 4-5) - Provides coverage for employees who are injured on the job. It is purchased by the employer; no part of it should be paid for by employees or deducted from their pay. It is 100 percent employer-paid. - The Connecticut program is administered through the Workers' Compensation Commission. Full text of the Workers' Compensation Act is in the General Statutes of Connecticut under Title 31, Chapter 568. - Employer's liability insurance supplements workers' compensation in the event you are sued for negligence as a result of an employee injury or death. - Note the…

Key Concepts

CONN-OSHA jurisdiction (the heart of this topic). The Connecticut Department of Labor's Division of Occupational Safety and Health (CONN-OSHA) administers Connecticut's Public Employer Only State Plan and enforces occupational safety and health standards as they apply to all municipal and state employees. It does not enforce standards in private businesses; in those, standards are enforced by USDOL-OSHA. (CT Business and Law Reference, Ch. 12 — CONN-OSHA section)

Federal presence in Connecticut. The two USDOL-OSHA Area Offices in Connecticut are in Bridgeport and Hartford. The state CONN-OSHA office is at 38 Wolcott Hill Road, Wethersfield, CT 06109. (Ch. 12 — CONN-OSHA section)