Bucket
In short
ADOR's term for each activity type a mixed contract is sorted into before the 15% test is applied.
In full
Bucket is ADOR's own word, used in quotation marks at section 2a of the Evaluating Mixed Construction Contracts worksheet. It is not Candor's coinage.
Sorting a mixed contract means assigning each itemized charge to the activity type it belongs to — maintenance, repair, replacement, alteration, modification — so that modification charges can be totaled separately from MRRA charges. The worksheet's chart carries those five columns and a total that must reach 100%.
Two assignment rules are not discretionary. Alteration work that has passed the applicable threshold joins the modification bucket rather than staying with the MRRA work. And demolition follows its parent activity: alteration demolition into the alteration bucket, replacement demolition into the replacement bucket, because demolition and site preparation are considered part of the main project.
Overhead and profit are allocated across the buckets pro rata by direct costs — the worksheet permits allocation by each bucket's percentage, and ADOR Tax Policy confirmed the pro rata method in writing on August 25, 2026.
The totals produced by sorting are what the 15% test compares. Sorting cannot be performed at all unless the itemized charges can properly be allocated to each activity type, which the worksheet states as a condition on the exercise.
ADOR Evaluating Mixed Construction Contracts worksheet, sections 1 and 2a; ADOR Tax Policy information letter, 2026-08-25