Oklahoma Mechanical Business and Law

Key Concepts

Bid Documents (NASCLA Ch. 6) A complete bid package includes: invitation to bid, bid instructions, bid forms (bid sheet, bid schedule, bidder's questionnaire), supplements (property survey, soil analysis), bonds, and insurance requirements. Bid bonds and performance bonds are commonly required at submittal. If changes occur before bid due date, an addendum is issued — it becomes part of the bid documents AND the final contract when awarded. Always evaluate addenda for cost impact.

Ethics in Bidding — Three prohibited practices: - Bid Shopping: The general contractor reveals original sub bids to other subs seeking a lower price after bids are submitted. - Bid Peddling: The subcontractor approaches the GC after award offering to beat the original price. - Bid Rigging: Contractors collude to fix/predetermine the award outcome. Some state statutes explicitly forbid these on public projects.

Oklahoma Mechanical Business and Law Exam

Key Concepts

Scheduling Methods - Calendar scheduling: Simplest method; tasks laid out on calendar dates. Best for small, straightforward projects. - Bar chart (Gantt chart): Tasks shown as horizontal bars across a timeline. Easy to read; shows duration but not task dependencies. - Critical Path Method (CPM): Shows task sequence and dependencies. Identifies the critical path — the longest sequence of dependent tasks that determines total project duration. Any delay on the critical path delays the entire project.

Scheduling Process Components - Task sequence: The logical order in which activities must occur (what must come before what). - Activity duration: Estimated time to complete each individual task. - Contingency time: Extra time built into the schedule to absorb unexpected delays or problems. - Float time (slack): The amount of time a non-critical task can be delayed without delaying the overall project completion. Tasks on the critical path have zero float.

10% of exam | ~5 questions

Key Concepts

Required Elements of a Binding Contract

All five elements must be present or the contract is unenforceable: 1. Offer — a clear proposal to do work for defined terms 2. Acceptance — unqualified agreement to the offer's exact terms (a counteroffer voids the original offer) 3. Consideration — something of value exchanged by both parties (money, services, goods) 4. Competent Parties — both parties must be of legal age and sound mind; corporations must be properly authorized 5. Legal Purpose — the contract cannot require illegal acts

Types of Construction Contracts

Key Concepts

Mechanics' and Materialmen's Liens (Oklahoma)

• Subcontractors and suppliers must file a lien claim within 4 months after the last date of furnishing labor or materials on the project.
• Pre-lien notice (also called a "Notice to Owner" or preliminary notice) is required for subcontractors and suppliers who do not have a direct contract with the owner. This notice must be served to protect lien rights before filing.
• Lien claims are filed with the County Clerk in the county where the project is located.
• Lien priority generally follows the rule that mechanic's liens relate back to the date the first labor or materials were furnished — giving them priority over later-recorded mortgages.
• Foreclosure of a lien must be initiated within 1 year of filing the lien claim or the lien expires.

Key Concepts

Prohibited Interview Questions

Never ask about: age, disabilities, pregnancy, marital status, children, religion, sexual orientation, or ethnic background. These questions expose you to discrimination lawsuits. Stick to questions about skills, work history, safety record, education, and job expectations.

Hiring Minors in Construction (FLSA Child Labor Rules)

Ages 14–15 working hours: - School in session: no earlier than 7 a.m., no later than 7 p.m. (9 p.m. June 1–Labor Day); max 3 hrs/day, 18 hrs/week - School not in session: no earlier than 7 a.m., no later than 7 p.m. (9 p.m. June 1–Labor Day); max 8 hrs/day, 40 hrs/week - No work during school hours

Ages 16–17: No federal restrictions on hours or number of hours.

Prohibited tasks for minors in construction (all minors, except apprentices as defined by law): - Operating power-driven woodworking machines, circular saws, band saws, guillotine shears - Operating elevators or power-driven hoisting apparatus - Operating power-driven metal-forming, punching, and shearing machines - Driving motor vehicles or serving as an outside helper - Exposure to radioactive…

Key Concepts

Types of Insurance Coverage

Property Insurance covers buildings, equipment, inventory, machinery, and other physical assets against damage, theft, or loss. All-Risk Builder's Risk Insurance is a specialized form covering buildings under construction, including materials and fixtures that will become part of the structure. Construction must be in progress for coverage to apply. Major construction defects (poor workmanship, faulty design) and contractor tools are typically not covered under builder's risk.

Commercial General Liability (CGL) is the core liability policy for contractors. It covers: - Premises and Operations - Products/Completed Operations - Contractual Liability - Property Damage - Bodily Injury - Independent Contractors

Supplemental liability policies (umbrella/excess policies) extend CGL limits when underlying policy limits are exhausted.

Automobile Insurance covers owned, non-owned, and rented vehicles used in business operations.

Burglary and Theft Insurance covers loss of business property due to theft or burglary — distinct from general property coverage.

Key Concepts

Employer Identification Number (EIN) - Required before hiring any employees or making payroll tax deposits - Apply using IRS Form SS-4; can be obtained online, by phone, fax, or mail - Every business entity with employees must have one — sole proprietors included

FICA Taxes (Federal Insurance Contributions Act) - Covers Social Security (6.2%) and Medicare (1.45%) — employee pays these rates, employer matches them exactly - Social Security has a wage base limit (changes annually); Medicare has no wage cap - Additional Medicare tax of 0.9% applies to high earners — employer does NOT match this portion - Total FICA burden: 7.65% from employee + 7.65% from employer = 15.3% combined

Federal Income Tax Withholding - Based on employee's Form W-4 (Employee's Withholding Certificate) - Employees can update W-4 at any time; employer must implement changes promptly - Withholding amount determined by filing status, allowances/adjustments, and pay frequency

Key Concepts

Governing Authority The Construction Industries Board (CIB), re-created under Title 59, Section 1000.2, regulates the mechanical trade alongside plumbing, electrical, roofing, and inspection trades. The Board continues until July 1, 2031 per the Oklahoma Sunset Law. Board members with mechanical trade experience must have at least 10 years in the trade — one mechanical contractor and one mechanical journeyman seat.

License Types and Categories Oklahoma's Mechanical Licensing Act recognizes three primary license categories: - Mechanical Contractor — business entity authorized to contract for mechanical work - Journeyman Mechanical — licensed individual qualified to perform mechanical work - Apprentice — working under direct supervision of a licensed journeyman; not independently licensed but must be registered

Qualifications and Experience - Journeyman applicants must demonstrate sufficient field experience (typically accumulated through apprenticeship) - Mechanical contractor applicants must hold or employ a qualifying journeyman license - The CIB has authority under Section 1000.4 to promulgate rules establishing specific experience thresholds and examination eligibility