Oklahoma Roofing Business and Law

Key Concepts

Bid documents. A competitive bid package includes an invitation to bid, bid instructions, bid forms, and supplements — items important to the overall bid process such as a property survey and soil analysis (Bid Documents, Page 6-1/47). Pre-bid meetings "may also be scheduled, especially for larger projects." If changes are made to a bid package before it is due, an addendum is issued; it becomes part of the bid documents and, ultimately, part of the contract when awarded.

Project documents. Drawings show a schematic diagram; specifications determine materials or methods. If specifications conflict with applicable codes, follow the stricter of the two — codes are the minimum requirements by law (Project Documents, Page 6-2/48). Bonds commonly required as part of the bid submittal are bid and performance bonds.

Oklahoma Roofing Business and Law

Key Concepts

Scheduling process elements — Sequence of tasks, activity duration, contingency time, task time ranges, and float time are determined during scheduling (Ch. 8 — Scheduling Process; Final Inspection).

• Activity duration depends on size of the project, labor hours estimated, and length of time dedicated to the task each day (a 4-hour task worked 2 hours/day = 2 working days). Get input from subcontractors and the experienced members of your crew. If total time exceeds the contract completion time, consider increasing labor resources, requiring overtime, or extending the project completion date — weighed carefully due to added costs and possible timeline conflicts with the owner (Ch. 8 — Activity Duration).
• Contingency time rules: tasks subject to weather delays require more; standard work requires less than custom work; tasks in areas with limited access require more (Ch. 8 — Contingency Time).
• Task time ranges: earliest/latest start and earliest/latest end dates, so the PM knows how far ahead or behind the project is (Ch. 8 — *Task…

Key Concepts

Required contract elements (Chapter 7 — Required Contract Elements). Four elements must be in effect to make a contract binding: Offer and Acceptance, Consideration, Competent Parties, Legal Purpose. Notarization is not a required element. - Offer and Acceptance: An estimate or bid you submit is an offer. A counteroffer is not acceptance — acceptance occurs only when both parties agree to the terms. If the offer states no deadline for acceptance, it expires in a "reasonable time," which is up to court interpretation. - Consideration: Both parties give up something of value. - Competent Parties: Parties must have legal capacity/sound mind; minors may not contract without parental consent. - Legal Purpose: Contracts must be possible to perform, not intended to harm anyone, and cannot require illegal activity. A contract to build a house that does not comply with building codes lacks legal purpose and is invalid.

Key Concepts

Bookkeeping and the accounting cycle - The first step in accounting is bookkeeping — accurate recording of all financial transactions. Open a separate business checking account and obtain a business credit card to keep business and personal finances separate (Chapter 2 — Bookkeeping; Chapter 13, Page 124). - Cycle order: (1) classify and record transactions, (2) post transactions, (3) prepare a trial balance, then prepare an adjusted trial balance, prepare financial statements, analyze financial statements (Chapter 13 / Financial Management chapter — The Accounting Cycle). - Posting transfers transactions from the journals to the appropriate accounts, which are located in the general ledger (Chapter 13 — Post Transactions). The trial balance is used to confirm debits equal credits (Page 125). - The cash disbursements journal is used when cash is paid out — loan payments and payments on vendor invoices (Financial Management chapter — Classify and Record Transactions).

Key Concepts

Oklahoma Workers' Compensation (Title 85A) - Every employer shall secure compensation for compensable injuries without regard to fault (§35(A)(1)). The primary obligation to pay is on the employer; buying an insurance policy does not relieve that obligation (§35(B)). Failing to secure coverage also does not relieve the obligation, and security must be maintained until each claim is paid, settled, or lapses (§38(C)). - No liability where the injury or death was substantially occasioned by the willful intention of the injured employee to bring it about (§35(A)(2)). - Securing compensation methods: authorized carrier, guaranty insurance, proof of financial ability to self-insure, group self-insurance association, or other security approved by the Commission and Insurance Department (§38(A)). Insurers must file notice with the Commission within 30 days of the policy's effective date (§38(A)(1)). Knowingly providing false information to secure/maintain a self-insurance permit is a felony, maximum fine $10,000 (§38(E)). - Posted notice must state the employer has secured compensation and give the name and address of the carrier and the policy expiration date (§41). -…

Key Concepts

Risk management benefits (Chapter 3 — Risk Management Benefits): lower business and liability insurance premiums, reduced chances of being sued, and improved chances of prevailing in a lawsuit. Indemnity is a way to transfer risk and exemption from loss incurred by any course of action (Chapter 3 — Insurance Defined).

Property insurance (Chapter 3): - All-risk builder's risk: covers almost all risks (theft, vandalism, accidental loss, damage/destruction); construction must be in progress for coverage to exist. Major construction defects such as poor workmanship and faulty design are generally not covered; tools may need separate coverage. AIA and AGC standard documents require replacement cost coverage — no allowances or deductions such as depreciation (All-Risk Builder's Risk Insurance section). - Subrogation: the insurer pays the insured, then sues the negligent third party — which can result in the owner's insurance company suing the contractor. Contracts may include a clause waiving the parties' right to sue one another (same section). - Named peril builder's risk: narrower than all-risk; covers only listed perils, typically fire and…

Key Concepts

Employer Identification Number (EIN) — A 9-digit IRS number arranged 00-0000000, used to identify employers' tax accounts. Obtain it by calling the Business and Specialty Tax Line at (800) 829-4933, faxing or mailing completed Form SS-4, or applying online at www.irs.gov. The only entities that do not need an EIN are sole proprietorships with no employees that file no excise or pension tax returns, and single-owner LLCs where the owner files employment tax returns; those owners use their social security number. All other entities, including partnerships, are required to obtain an EIN. (Ch. 14 — Employer Identification Number; Ch. 10 — Employer Identification Number)

Federal employment taxes — Most employers must withhold (except FUTA), deposit, report and pay: social security and Medicare taxes (FICA), federal income tax withholding, and federal unemployment (FUTA) tax. Keep all records of employment taxes for at least four years. (Ch. 14 — Federal Employment Taxes)

Key Concepts

Who must register; who need not. A "roofing contractor" includes subcontractors and nonresident contractors engaged in, advertising, or soliciting commercial or residential roofing work (§1151.2(18)). Not a roofing contractor: a person doing demolition/construction-waste cleanup containing roofing material; a person working under the direct supervision of the roofing contractor hired as employee, day laborer or contract laborer whose payment is subject to self-employment tax; a person working uncompensated on his or her own property or that of an immediate relative; and a handyman compensated by the owner who performs the roofing repair in conjunction with other repairs and does not perform more than two roofing jobs per year (§1151.2(18)(a)–(d)). Also exempt: licensed engineers, licensed architects, licensed HVAC and others licensed by the jurisdiction operating within the scope of their license (§1151.9(B)(6)). Prime and general contractors bidding trade work in areas additional to roofing may subcontract roofing to a registered roofer — but a bid solely for roofing contractor work requires registration (§1151.9(B)(8)). Labor-only crews installing asphalt shingles, tile shingles, synthetic shakes or wood…