Business Law and Project Management Notes
Chapter 1
The Contracting Business
Business Fail Poor Planning and management
Poor sales, high operating expenses, no invoice collection, too many fixed assets, inventory problems, poor location, fraud
Business Plan Planning Tool Loan or Investor Document Benchmaking Tool Cover page, executive summary, company summary, products/services, market analysis, marketing strategy, financial plan
Pitfalls
Realistic Assumptions Simple Language Risks as well as opportunities Analyze Competition
Chapter 2
Business Structure
C Corp : Stockholders have limited liability, tax on profit, BOD and corporate officers, limit on activities, double taxation
S Corp: Pass through income/loss/deductions to shareholders, limited to <75 shareholders
LLC: Does not protect personal actions from liability, taxes paid on distributed income, no public disclosure of finances, taxed as a (1)sole proprietor or (>1) partnership
Chapter 3
Licensing
Va Board for Contractors 13 members: 9 contractors, 1 material salesman, 1 official, 2 citizens
License and Class Specialty: A $120-$750k/yr with >$45,000 net worth
B $7,500-$120k/project or >$150k/yr with $15,000 net worth C $1,000-$7,000/project or <$150k/yr with no net worth requirement
All landscape Irrigation and Water Well contractors must be licensed as well as: Highway/Heavy, Electrical, Plumbing, HVAC
License expires in 2 years. New form and fees to renew
Contracts
Must include: Start Date, Estimated Completion Date, Cost and Payment Schedule, Materials, Plain Language Exculpatory Clause, Statement of Assurance of Compliance, Disclosure of Cancellation Rights, Name, Address, Class, License #, Statement explaining Change Orders and Signed by ALL Parties
Va Contractor Transaction Recovery Fund Established for Homeowners that suffered reimbursable loss by incompetent or dishonest licensed GC. Limit $20k/claimant or $40k/contractor. ($25 fee in license application
The Contracting Business
Business Fail Poor Planning and management
Poor sales, high operating expenses, no invoice collection, too many fixed assets, inventory problems, poor location, fraud
Business Plan Planning Tool Loan or Investor Document Benchmaking Tool Cover page, executive summary, company summary, products/services, market analysis, marketing strategy, financial plan
Pitfalls
Realistic Assumptions Simple Language Risks as well as opportunities Analyze Competition
Chapter 2
Business Structure
C Corp : Stockholders have limited liability, tax on profit, BOD and corporate officers, limit on activities, double taxation
S Corp: Pass through income/loss/deductions to shareholders, limited to <75 shareholders
LLC: Does not protect personal actions from liability, taxes paid on distributed income, no public disclosure of finances, taxed as a (1)sole proprietor or (>1) partnership
Chapter 3
Licensing
Va Board for Contractors 13 members: 9 contractors, 1 material salesman, 1 official, 2 citizens
License and Class Specialty: A $120-$750k/yr with >$45,000 net worth
B $7,500-$120k/project or >$150k/yr with $15,000 net worth C $1,000-$7,000/project or <$150k/yr with no net worth requirement
All landscape Irrigation and Water Well contractors must be licensed as well as: Highway/Heavy, Electrical, Plumbing, HVAC
License expires in 2 years. New form and fees to renew
Contracts
Must include: Start Date, Estimated Completion Date, Cost and Payment Schedule, Materials, Plain Language Exculpatory Clause, Statement of Assurance of Compliance, Disclosure of Cancellation Rights, Name, Address, Class, License #, Statement explaining Change Orders and Signed by ALL Parties
Va Contractor Transaction Recovery Fund Established for Homeowners that suffered reimbursable loss by incompetent or dishonest licensed GC. Limit $20k/claimant or $40k/contractor. ($25 fee in license application