The Construction Industry
 
  1. The Participants

    2. The three necessary people (or groups) who are always present in every construction project
     

    1. The Owner
      1. Owner: The person or company which has a need or desire to construct a building
        1. Business organization types
          1. Sole Proprietor (an individual or family)
          2. Partnership (two or more individuals who sign a partnership agreement to share costs and benefits)
          3. Corporation (a separate organization formed by two or more individuals which is legally created under the laws of one state which then the individuals work for and own shares in it)
      2. Real Estate Professional (licensed by the state)
        1. Broker
        2. Agent
      3. Financing and Purchase
        1. Developer
        2. Land Trust
        3. Partnership
        4. Banks
        5. Savings and Loan Companies
        6. Secondary Lenders
          1. Fannie Mae (FNMA, or Federal National Mortgage Association) www.efanniemae.com/index.jsp
          2. Ginnie Mae (Government National Mortgage Association) www.ginniemae.gov
          3. Freddie Mac (FHLMC, or Federal Home Loan Mortgage Corporation) www.freddiemac.com
        7. Lender's Construction Inspector
        8. Title and Trust Companies
          1. Chicago Title Insurance Company (formerly Chicago Title and Trust Company) www.ctic.com
          2. Prairie Title Company www.prairietitle.com
        9. Loan Guarantee Companies
          1. HUD (U.S. Department of Housing and Urban Development) www.hud.gov
          2. FHA (Federal Housing Administration) http://en.wikipedia.org/wiki/FHA_loan
            or www.hud.gov/offices/hsg/fhahistory.cfm
          3. VA
            4. (Veterans Administration) www.homeloans.va.gov/elig2.htm
             
    2. The Architect and Related Professionals
      1. Architect (licensed by each state)
        1. "Architect of Record" seals and signs drawings for permit and construction
        2. Six types of business organizations under IRS requirements:
          1. Sole Proprietorship - sole owner is not paid a salary; only salaries and payroll taxes paid for other employees are allowable business expenses; there are no forms you need to fill out to start this type of business; the only thing you need to do is report your business income and expenses on your Form 1040 Schedule C; this is the easiest form of business to set up, and the easiest to dissolve.
          2. Partnership - partnerships are separate entities from the shareholders; unlike corporations, partnerships must have at lease one General Partner who assumes unlimited liability for the business; partnerships must have at least two shareholders; partners need not be paid a salary.
            1. Limited Liability Partnership (L.L.P.) - a type of partnership that protects a partner from personal liability for negligent acts committed by other partners or by employees not under his or her direct control.
          3. Corporation
            1. C-Corporation (Inc.) - can have an unlimited number of shareholders; profits from corporations are taxed at minimum 15% rate; shareholders are also taxed on their income; typically profitable businesses are structured as Corporations; dividends from a corporation are taxed twice, once at the corporate level and again at the shareholder level.
            2. Professional Corporation (P.C.) - A legal structure authorized by state law for a fairly narrow list of licensed professions, including architects, lawyers, doctors, accountants, and many types of higher-level health providers; does not absolve a professional for personal liability for his or her own negligence; the main reason why groups of professionals choose this organizational structure is that, unlike a general partnership, owners are not personally liable for the malpractice of other owners.
            3. Limited Liability Company (LLC) - can be composed of shareholders who designate all management responsibility to salaried employees; shareholders would not be subject to self-employment tax; owners are called members not partners or shareholders; members cannot be held personally liable for debts unless they have signed a personal guarantee.
          4. S-Corporation - an "S-Corporation" is a regular corporation that has between 1 and 100 shareholders and that passes-through net income or losses to shareholders under in accordance with Internal Revenue Code, Chapter 1, Subchapter S; all profits are distributed to shareholders who individually pay taxes on their income; officers must be paid a reasonable salary.
          5. Trust - usually formed upon the death of an individual and are designed to provide continuity of the investments and business activities of the deceased individual.
          6. Non-profit Corporation - corporations formed for a charitable, civic, or artistic purpose; nonprofits are generally exempt from federal and state taxation on their income.
        3. Roles in an architectural firm
          1. Designer
          2. Project Manager
          3. Technical Coordinator
          4. Intern Architects
          5. Draftspersons
          6. Support Staff
            1. Receptionist
            2. Librarian
            3. Administrative Assistant
            4. Bookkeeper or Accountant
      2. Engineers (licensed by the state)
        1. Civil
        2. Structural
        3. Mechanical
        4. Refrigeration
        5. Electrical
        6. Plumbing
        7. Fire Protection
        8. Communications
      3. Planner
      4. Landscape Architect (registered by the state)
      5. Interior Designer (registered by the state)
      6. Interior Decorator
      7. Delineator (Perspectivist)
      8. Model Builder
      9. Specification Writer
      10. Cost Estimator
      11. Surveyor
      12. Program Consultant
      13. Lighting Consultant
      14. Acoustical Consultant
      15. Soil Testing Consultant or Geotechnical Engineer
      16. Testing Agencies
        1. Concrete Testing
        2. Steel Testing
        3. Wood Testing
      17. Environmental Engineer
        1. Asbestos Testing
        2. PCB Testing
        3. Lead Testing
        4. Air Pollution

          5.  
    3. The Contractor
      1. Construction "Delivery" Method
        1. Traditional Design-Bid-Build (General Contractor)
        2. Separate contracts for trades hired by Owner
        3. Design-build
        4. "Build to Suit"
        5. Turn-key
        6. Fast track
        7. Scope
      2. Subcontractors
        1. Demolition Contractor
        2. Excavation Contractor
        3. Concrete Contractor
        4. Steel Contractor
        5. Mason
        6. Paving Contractor
        7. Carpenter
        8. Drywall Contractor
        9. Flooring Contractor
        10. Painter
        11. Roofer
        12. Sheet Metal Contractor
        13. Heating Contractor
        14. Piping Contractor
        15. HVAC Contractor
        16. Refrigeration Contractor
        17. Plumbing Contractor
        18. Sprinkler Contractor
        19. Electrician
        20. Telephone
        21. Alarm Contractor
      3. Fabricators
        1. Steel
        2. Precast Concrete
        3. Stone
        4. Wood Truss
        5. Millwork
      4. Suppliers
        1. Masonry
        2. Roofing
        3. Lumber
        4. Specialties (skylights, etc.)
        5. Hardware
      5. Trade Unions
        1. Carpenters
        2. Masons
        3. Ironworkers
        4. International Brotherhood of Electrical Workers
        5. Sheet Metal Workers Union
      6. Minority Contractors
        1. DBE "Disadvantaged Business Enterprise"
        2. MBE "Minority Business Enterprise"
        3. FBE "Female Business Enterprise"
      7. Plan Rooms
        1. McGraw Hill Construction Dodge (formerly F. W. Dodge) http://dodge.construction.com/
        2. Reed Construction Data
          3. www.reedconstructiondata.com