Business and law2 Flashcards
In example of an injury that employer is required to keep records of
Knocked on conscience but returns to work after an hour
The contractor finds a 6 inch discrepancy on the set of plans
Contact the architect or the building designer
If you find out work done by a previous contractor is in violation of building codes what should you do
Tell the homeowner give them an estimate of the cost to make it right
How often should a supervisor visit the job site
Once a day
Who is responsible for keeping track of change orders
Contractor
After the building plans are approved the next step is to
Review the plans for errors or corrections
Serious violation of OSHA regulations can carry out fine of ??? for each violation
$25,000
How should you check to see if a subcontractor has workers comp insurance
Ask to see the expiration date on the subcontractors certificate of insurance
A near miss safety situation should be
Investigated with the written report
If you include depreciation on your income statement your first year in business but not the next year
Your net income will be higher than it should be
In employer pays futa taxes to
IRS
If your a subcontractor and the prime doesn’t pay you you can file a stop notice
Stop notice will
Put a lien on the construction funds
To analyze the income and outflow of cash during a period of time use
Cash flow statement
In example of a fixed expense
Office rent
To financial ratios that measure liquidity
Current ratio
quick ratio
fact about budgets
A budget should allow leeway for month-to-month variations
The federal forms given to a new employee
W-4 and
I-9
To ensure your license bond remains in effect after it’s expiration date
Make sure the effective date of the new Bond is the same as the cancellation date of the old bond
The best way to determine if a company is profitable
Look at income and expense statement
How often are FUTA tax deposits made
Quarterly
An income statement shows
Income and expenses over an extended period of time
At the end of each month data is posting from the book keeping journals
General ledger
Social Security tax for a self-employed contractor is
Based on the rate set for the year
If your bid is accepted but you accidentally left work out
You are responsible for the work
You decide to subcontract electrical work. How do you determine what Price to add to the work
Get a bid from a contractor
If you an rme and work all week that company you can’t get another license
.
An rme as the qualifier for no more than ? Firms any one year
Three
Using funds from my current job to pay for an unrelated job is called
Diversion
The best way to ensure materials are delivered at the right time
Follow critical path method
All employees must be covered by contractors insurance full and part-time
.
In the cash system of accounting the transaction is recorded or posted
When cash changes hands
And employer must 1099 and independent contractor for services of. ? Or more
$600
Supplier supply materials to a contractor without any form of security other than trust has extended. What type of credit
Open account
If you buy a business that as a bargaining agreement you are bound by it for up to
Three years
? Is not covered by standard contractors insurance policies
Employees tools
After home-improvement contract is signed the contractor must begin the work in
20 days
Who must pay for a preemployment physical
Employer
CSlb me disclaimer with address must be on
? Contracts
All
When Must contractor include notice to seller
In all home-improvement contracts over $500
The notice to owner is given to(reason)
Let the owner know property can be lean and
If there is no collective-bargaining agreement and an employee files a complaint and the new ploy of fires them for it what could happen if they filed an appeal
The contractor would reinstate employee and reimburse them for lost wages and benefits
When a joint control amenddum is issued ? Does not have to be included in the contract
Schedule of payments
If an owner is having a hard time making payments as a contractor you should do what to protect yourself?
Ask the owner to open an escrow account
A difficult item to estimate
Labor cost
Excavators must clearly marked the boundaries of a work area with what color paint
White
Before you build a landfill you must notify
Government/engineers
Who might not approve of a set of plans in California
Interior designer
Who furnishes MSDS sheets
Supplier
If a contractor has temporary cash flow problems what is a good way to get through the crisis
Use funds from the preestablished line of credit
? Although usually the largest single item in the bed can be fairly accurately determine
Materials
You are at a critical point in the project and the owner tells you that something already completed was not done correctly. What should you do
Tell the owner you will attend to the matter after you complete the critical work you’re doing
What is the best way to monitor labor costs
Figure the hours from detailed timecards
If unsafe or faulty equipment is found on the job site what needs to be done
Contractor needs to handle it
Most construction contracts the retention may be held for up to how many days as a guarantee that the prime pays the subcontractors and suppliers
60
How often should the safety supervisor be at the job site
It depends on the work being done
Who is responsible that safety equipment is actually put to use on the job site
Contractor
A building inspector can enter and inspect a residence what times
8 AM to 6 PM
A balance sheet shows
Assets and liabilities at a certain point in time
when calculating unemployment and disability insurance taxes and employer would not include
Severance pay
Before work begins on the project a contractor must ask the owner if asbestos is present in the building constructed prior to
1978
When preparing a bid you should
Consider unexpected delays
If the contractors license is issued on January 18, 1995 on what date will it expire
January 31, 1997
But notice canceling a home solicitation contract becomes effective
When the written notice is deposited in the mail
If an owner councils a home solicitation contract on March 20 by what date must the contractor return the down payment
March 30
You can renew your contractors license withinhow long before it becomes void
Five years
A subcontractor must file a mechanics lien with the
County recorder
How many days of inactivity must pass before a notice of cessation may be recorded
30 days
If a subcontractor serves a notice to owner with a stop notice it would probably be to
Let the owner know that the sub has not been paid by the prime contractor and the owner must set aside funds to pay the subcontractor
Employee can put a maximum of ? Exemptions on their W-4
10
How long should the contractor keep employee records
Three years
A contractor bids on the home improvement project and wins. Then he decides not to take the job.
Which bond would protect the homeowner
Bid bond
Which building code should the contractor follow
Local code
When do you need to have an EIN
When you are a soul proprietor with employees
When do you need a building permit
When it is required by local building department
What is the purpose of a contract bond
To guarantee job completion and payment of labor and materials
