Virginia Contractor General Portion

Key Concepts

Sole proprietorship (Ch. 2, Sole Proprietorships, Page 2-1): simplest ownership form; if operating under a name different than your own, "a fictitious name certificate needs to be filed at a local or state government office." You "bear personal liability for all actions undertaken in the name of the business," net income "is reported as ordinary income," and the business "is terminated upon the owner's death."

Partnerships (Ch. 2, Partnerships, Page 2-2): a general partnership "can be formed through an oral agreement, but it is recommended that a written partnership agreement be created." A limited partnership "consists of one or more general partners and one or more limited partners." Liability: general partners have "personal and unlimited liability for all actions undertaken in the name of the business, including all debts"; limited partners "have no personal liability" and "are…

Key Concepts

• Bid package components — A competitive bid package often includes an invitation to bid (project overview, deadlines, general requirements), bid instructions, bid forms (bid sheet, bid schedule, bidder's questionnaire on experience, financial responsibility and capability, and a copy of the contract), and supplements such as a property survey and soil analysis. (Bid Documents, Page 7-1)
• Non-responsive bids — A contractor's bid may be determined to be non-responsive if information is incorrectly submitted or omitted altogether. (Bid Documents, Page 7-1)
• Addenda — 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. (Bid Documents, Page 7-2)
• Pre-bid meetings — Scheduled especially for larger projects; project specifications and any changes to the bid package…

Key Concepts

Required contract elements (Chapter 8 — Required Contract Elements; Page 8-1). Four elements make a contract binding: (1) offer and acceptance, (2) consideration, (3) competent parties, (4) legal purpose. Notarized signatures are not a required element.

• Offer and acceptance (Offer and Acceptance, Acceptance): A bid or estimate is an offer. A counteroffer is not acceptance — acceptance occurs only when both parties agree to the same terms. If no deadline for acceptance is stated, the offer expires in a "reasonable time," as interpreted by the court.
• Consideration (Consideration): both parties must give up something of value.
• Competent parties (Competent Parties): parties must have legal capacity; someone heavily under the influence of drugs or alcohol may lack competence. Courts may rule a mentally disabled person incompetent; minors cannot contract without parental consent.
• Legal purpose…

Virginia Contractor General Portion — Project Management Source: NASCLA Contractors Guide, Scheduling and Project Management chapter (Ch. 9) and Customer Relations chapter (Ch. 10)

Key Concepts

Scheduling process (Page 9-1 to 9-2) - Sequence of tasks: Some tasks can be done at the same time; others must be completed first. Example: interior and exterior paint may be applied at the same time, but drywall must be completed before paint (Page 9-1). - Activity duration depends on three factors: size of the project, labor hours estimated, and length of time dedicated to the task each day. Example: a task estimated at four hours with only two hours per day available = two working days (Scheduling Process, Page 9-1). - If total activity duration exceeds the project completion time in the contract, adjustments must be made: increasing labor resources, requiring overtime,…

Source: NASCLA Contractors Guide, Virginia 11th Ed., Chapter 4 — Managing Risk.

Key Concepts

Risk assessment (Insurance section, Page 4-1). You must determine the probability of a loss occurring and the consequences if it occurs. A risk with potential for a large loss and low probability is handled differently from one with potential for minimum loss but high likelihood.

Property insurance (Property Insurance section, Pages 4-2 to 4-3). - All-risk builder's risk (Page 4-3): property insurance covering property owners and builders for buildings under construction; typically covers machinery, equipment, materials, supplies, and fixtures that are part of or will become part of the structure. Construction must be in progress for coverage to exist. Major construction defects such as poor workmanship and faulty design are generally not covered, and your tools may not be covered. AIA and AGC standard documents…

Key Concepts

Fall protection trigger height. Each employee on a walking/working surface with an unprotected side or edge 6 feet or more above a lower level must be protected by guardrail systems, safety net systems, or personal fall arrest systems — §1926.501(b)(1).

Guardrail performance. When the 200-pound test load is applied in a downward direction to the top edge, the top edge must not deflect to a height less than 39 inches above the walking/working level — §1926.502(b)(4). Normal top edge height is 42 inches ±3 inches.

Anchorages. Anchorages for personal fall arrest equipment must be independent of any anchorage used to support or suspend platforms and capable of supporting at least 5,000 pounds per employee attached, or be designed, installed and used as part of a complete system maintaining a safety factor of at least two under the…

Virginia Contractor General Portion

Key Concepts

Fair Labor Standards Act (FLSA) - Effective July 24, 2009, the federal minimum wage increased to $7.25 per hour (Employee Management chapter — Fair Labor Standards Act (FLSA) section; Page 11-4). - Each workweek stands alone. For minimum wage and overtime purposes, an employer may not average two or more workweeks. Overtime is owed at 1.5 times the regular rate for hours over 40 in that workweek only (Chapter 11 — Workweek Defined under FLSA section).

Form I-9 / Immigration and Nationality Act - The I-9 must be completed with required documentation within three days of hire (Chapter 11 — Immigration and Nationality Act section). - Retention: keep on file at least three years after the date of hire, or one year after employment ends, whichever is later (Page 11-6). - **No I-9…

Virginia Contractor General Portion — NASCLA Contractors Guide, Chapter 14

Key Concepts

The accounting cycle has six steps: (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. (Chapter 14, The Accounting Cycle)

Posting is the process of transferring transactions recorded in the journals to the appropriate accounts in the general ledger. Each account can then be totaled to determine its balance. (Post Transactions section)

Chart of accounts numbering: 1000–1999 Assets; 2000–2999 Liabilities; 3000–3999 Equity; 4000–4999 Revenue; 5000–5999 Cost of Goods Sold; 6000–6999 Expenses; 7000–7999 Other Revenue; 8000–8999 Other Expenses. (Classify and Record Transactions section)

Key Concepts

Employer Identification Number (EIN) - You need a Federal EIN (also called a taxpayer identification number) before you become an employer and hire employees. The only entities that do not need an EIN are sole proprietorships with no employees that file no excise or pension tax returns, and LLCs with a single owner (where the owner will file employment tax returns). In those cases the owner uses his or her Social Security number. All other entity types, including partnerships, must obtain an EIN. (Ch. 15, Employer Identification Number, p. 15-1) - The EIN is a 9-digit number issued by the IRS (00-0000000). Obtain it by calling the Business and Specialty Tax Line at (800) 829-4933, faxing or mailing Form SS-4, or applying online at www.irs.gov. (Ch. 15, p. 15-1)

Key Concepts

Governing law. Mechanics' lien law is in the Code of Virginia, Title 43, Chapter 1. Statutes and court opinions set a strict procedure for perfecting and foreclosing a lien (Chapter 16, p. 169).

Who has lien rights (§ 43-1, § 43-3). "General contractor" includes contractors, laborers, mechanics, and persons furnishing materials who contract directly with the owner; "subcontractor" includes those same parties who do not contract with the owner but with the general contractor (§ 43-1). Persons supplying labor or materials to a subcontractor also have lien rights (Chapter 16, p. 169). § 43-3 grants the lien to all persons performing labor or furnishing materials of the value of $150 or more, including the reasonable rental or use value of equipment; the Chapter 16 narrative states the threshold as $50 or more (p. 169) — know both…