Landscape Business and Contracts Flashcards

What is the Landscape Industry Certified (LIC) credential in the US landscape industry?

Answer: A voluntary professional certification from the National Association of Landscape Professionals (NALP) that validates competency in landscape installation and maintenance

The Landscape Industry Certified (LIC) designation is a voluntary professional credential administered by NALP that tests and validates practical and technical competency in landscape installation and maintenance.

What is 'workers' compensation insurance' and why is it legally required for landscape companies with employees in most US states?

Answer: Insurance that covers medical expenses and lost wages for employees injured on the job, required by state law to protect workers and shield employers from lawsuits

Workers' compensation insurance covers medical treatment and partial lost wages for employees injured on the job, and is required by law in most states to ensure injured workers receive care without having to sue their employer.

What is a 'bid bond' used for in competitive landscape contracting?

Answer: A surety bond submitted with a bid guaranteeing the contractor will enter into the contract at the bid price if awarded the job

A bid bond guarantees that if a contractor is awarded a project based on their bid, they will actually enter into the contract at that bid price, protecting the project owner from a low-ball bid followed by withdrawal.

What does 'as-built drawings' refer to in a completed landscape project?

Answer: Revised drawings that document the actual final installed conditions, including any field changes made during construction

As-built drawings are updated construction documents recording what was actually installed, including any deviations from original plans, providing an accurate record for future maintenance or expansions.

What is 'accounts receivable' (AR) in a landscape business and why is managing it critical?

Answer: Money owed to the business by clients for completed work, critical to manage because delayed collection creates cash flow problems that can threaten business operations

Accounts receivable is money owed to the landscape business by clients for services rendered but not yet paid; poor AR management leads to cash flow shortfalls that can prevent meeting payroll, purchasing materials, or paying bills.

What does 'liquidated damages' mean in a commercial landscape contract?

Answer: A predetermined amount specified in the contract that the contractor must pay for each day a project is not completed by the agreed deadline

Liquidated damages clauses establish a fixed dollar amount per day of delay beyond the completion date, providing the client with a contractually agreed remedy for late delivery without the need to prove actual damages.