Strand 1 Study Notes: Business Operations & 21st Century Skills for Core and Sustainable Construction

Business Structure

The legal and organizational form a company uses, affecting liability, taxes, and decision-making.

Sole Proprietorship

A business run by one owner who has personal liability for debts or claims.

Partnership

A business structure where two or more owners share management and profits.

Corporation

A separate legal entity from its owners, limiting personal liability and suitable for larger operations.

Limited Liability Company (LLC)

A structure allowing flexible management while limiting personal liability.

Stakeholder

Anyone affected by the project or who can influence its outcome.

General Contractor (GC)

The entity that manages overall construction and is responsible for completing the project.

Subcontractor

A party that performs specific trades or works under the general contractor.

Estimating

The process of predicting the cost to complete a project.

Bidding

Offering a price, schedule, and approach to perform construction work.

Direct Costs

Costs directly tied to installed work such as labor and materials.

Indirect Costs (Overhead)

Costs required to run a business but not traceable to one installed component.

Quantity Takeoff

Measuring project components from drawings and specifications.

Allowance

A placeholder amount for an item not fully selected, potentially adjusting the price later.

Contingency

Money set aside for uncertainties and risks in a construction project.

Change Order

A formal modification to contract scope, time, and/or price.

Risk Management

The process of identifying and responding to potential risks in a project.

Quality Assurance (QA)

The planned system to prevent defects in a project.

Quality Control (QC)

The inspections and tests that detect defects in a project.

Submittals

Documents provided by the contractor that show what will be installed.

Request for Information (RFI)

A formal question seeking clarification when documents are unclear.

Commissioning

A structured process to verify building systems perform as intended.

Customer Service in Construction

Reliability, transparency, and delivering promised outcomes to clients.

Cybersecurity in Construction

Protecting sensitive information such as contracts and project plans from unauthorized access.

Sustainability in Construction

Meeting environmental goals through clear requirements and accountable processes in construction.

Cash Flow

The timing of money coming in and out of a construction project.

Job Cost Tracking

Monitoring actual costs against the estimate during a construction project.

Billing Documentation

Formal documents required to request payment based on project progress.

Construction Ethics

The principles guiding fair and honest conduct in construction.

Building Codes

Minimum standards for safety and performance in construction projects.

Safety Culture

The shared expectation that safety is integrated into all aspects of construction work.

Professionalism on Site

Consistent, respectful behavior, punctuality, and adherence to site rules in construction.

Critical Path

The sequence of activities that determines the earliest possible project completion date.

Problem-Solving Cycle

A systematic process for addressing issues in construction projects.

Root Cause Analysis

Identifying the underlying reason for a problem, rather than just treating its symptoms.

Leadership in Construction

Setting clear expectations, coaching, and ensuring safety and quality without needing a title.

Conflict Resolution

A structured approach to managing and resolving disputes in construction.

Sustainable Practices

Methods that meet environmental goals while ensuring efficiency and productivity.

Documentation Importance

The need for clear, traceable records to protect against disputes and ensure compliance.

Design Revisions

Changes made to project plans and specifications during the construction process.

Trade Coordination

Managing interactions among various construction trades to prevent conflicts and delays.

Warranty Callback

A request for service related to defects after project completion.

Waste Management

The processes involved in reducing, recycling, and responsibly disposing of construction waste.

Permits

Official approvals required before construction can begin, ensuring compliance with local laws.

Inspection

Verification process to ensure the construction meets specified codes and standards.

Change Management

The process of managing changes to project scope, schedule, or costs effectively.

Team Collaboration

Working together effectively within a project team to achieve common goals.

Trade Dress

The distinctive visual appearance of a construction project that cannot be altered without permission.