Academic Catalogs

CNST A252: Business Law for Contractors

Course Outline of Record
Item Value
Curriculum Committee Approval Date 12/02/2020
Top Code 095700 - Civil and Construction Management Technology
Units 1.5 Total Units 
Hours 27 Total Hours (Lecture Hours 27)
Total Outside of Class Hours 0
Course Credit Status Credit: Degree Applicable (D)
Material Fee No
Basic Skills Not Basic Skills (N)
Repeatable No
Grading Policy Standard Letter (S)

Course Description

Legal aspects of the formation, operation, regulatory requirements, financing, and contracts for successfully operating a construction contracting business in California. Transfer Credit: CSU.

Course Level Student Learning Outcome(s)

  1. Describe the different legal entities that a construction company may assume.
  2. Identify types of contracts used by a construction company/corporation.
  3. Identify the basic legal requirements of a contract for construction contracting and subcontracting.
  4. Summarize the appropriate legal requirements for starting up and operating a construction firm.

Course Objectives

  • 1. Discuss what type of legal business entity is appropriate.
  • 2. Recognize a Doing-Business-As (DBA) Recognize the need for legally binding contracts.
  • 3. Identify contract fundaments
  • 4. Recognize the financial vital signs of a successful contracting business.
  • 5. Review the appropriate legal requirements for establishing and operating a contracting office.
  • 6. Recognize the various methods for capitalizing a contracting business.
  • 7. Review the regulatory requirements for the following:
  • I Licensing – state
  • II Licensing – local
  • III CSLB requirements
  • IV Handling grievances
  • V Preliminary notice
  • VI Mechanic liens
  • VII Perfecting/enforcing liens

Lecture Content

Business Formation What type of business entity is appropriate. Sole proprietorship. Partnership – limited and general LLC Corporation Doing-Business-As (DBA) Contracts Why create contracts. Contract fundaments Drafting contracts – contents, posture, broad vs. brief. Contract mistakes Handling change orders Resources Financials Financial vital signs Where are the business vital signs Basic financial reports Why theyre important How to read them Business Operations Staffing and staffing plans Resources HR Issues Management/supervision Capitalization Capitalizing the company Debt, equity, and other sources of capital Regulatory Compliance Licensing – state Licensing – local CSLB requirements Initial Continuing Handling grievances Preliminary notice Mechanic liens Perfecting/enforcing liens

Method(s) of Instruction

  • Lecture (02)
  • DE Live Online Lecture (02S)

Instructional Techniques

Instruction methodologies will include, but not necessarily be restricted to, the following:   1.   Detailed multimedia/lectures of each topic covered. 2.   Student feedback during each lecture. 3.   Detailed illustrative discussion of lecture handout and textbook information. 4.   Guest speakers from the construction industry.

Reading Assignments

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Writing Assignments

Essay assignments, report preparation and projects

Out-of-class Assignments

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Demonstration of Critical Thinking

Quizzes, exams, short answers, reports and projects

Required Writing, Problem Solving, Skills Demonstration

Essay assignments, report preparation and projects

Textbooks Resources

1. Required Abdulaziz, Sam K. California Construction Law, ed. Los Angeles: Bni Publications Inc, 2002 Rationale: -