As used in this part:

1. (1)

   1. (A) “Construction management” means a process of professional management applied to a construction program, generally from start to finish, for the purpose of controlling:

      1. (i) Time;
      2. (ii) Cost; and
      3. (iii) Quality.

   2. (B)

      1. (i) Usually the construction management organization links itself to the owner as an agent and thereby places itself in a fiduciary relationship with the owner.
      2. (ii) Construction management offers a broad range of services encompassing the planning, procurement, construction, and warranty phases of a project.
      3. (iii) In this relationship, the construction manager can properly represent the owner both to the design professional and to the contractors;

2. (2)

   1. (A) “Full-time employee” means a person who is an actual employee of the business, not an independent contractor.
   2. (B) The person must work, on average, thirty (30) or more hours a week for the business (one thousand five hundred (1,500) hours per year), must not be paid as an independent contractor (not receive a “1099” for his or her earnings but receive a “W-2” for his or her earnings).
   3. (C) A full-time employee is not someone who is hired “job to job” as needed.

   4. (D) Other factors to be considered in making this determination include, but are not limited to:

      1. (i) Whether the business pays for workers’ compensation insurance on the individual;
      2. (ii) Whether the business pays payroll taxes on the individual;
      3. (iii) The amount of control the business has over the activities of the individual;
      4. (iv) The ownership of the tools used by the individual; and
      5. (v) Whether the individual maintains his or her own business separate from the business in question;
3. (3) “Ownership” means, when the terms his or her own or its own property is used in the contractors licensing law, the sole and exclusive right to sell or convey the property;

4. (4)

   1. (A) “Qualifying party” means a person who has passed the appropriate business and law or trade examination.

   2. (B) To act as a “qualifying party” a person must be:

      1. (i) A sole owner;
      2. (ii) A partner of the partnership;
      3. (iii) An officer of the corporation who is actively engaged in the day-to-day activities of the company;
      4. (iv) A member of the limited liability company who is actively engaged in the day-to-day activities of the company;
      5. (v) A partner of the limited liability partnership who is actively engaged in the day-to-day activities of the company; or
      6. (vi) A full-time employee;

5. (5)

   1. (A) “Remodel” means the significant structural alteration or repair of an existing structure, including additions to existing structures.
   2. (B) Additions that add more than fifty percent (50%) to the existing structure are considered new construction, not an addition; and

6. (6)

   1. (A) “Single-family residences” means, as referred to in Arkansas Code § 17-25-101, as amended, any project consisting of one (1) but not more than four (4) units constructed for residential occupancy.
   2. (B) Any project consisting of five (5) or more units is considered multifamily housing.