General conditions refer to the Indirect Costs necessary for managing a construction project but not directly tied to physical construction work. These include site supervision, temporary utilities, and project administration.
How General Conditions Affect Project Costs
Although not directly related to labor or materials, general conditions ensure smooth project execution. If not properly managed, these costs can contribute to budget overruns and reduced profitability.
Optimizing General Conditions Costs
- Efficient Site Management – Ensure only necessary temporary facilities and personnel are deployed.
- Clear Contract Terms – Outline general condition costs upfront to avoid disputes.
- Bulk Purchasing – Reduce costs by securing long-term contracts for common site needs.
Related Terms: Indirect Costs, Lump Sum Contract, Mobilization Cost
FAQs
Are general conditions included in the overall project budget?
A: Yes, they are part of a project’s total cost but are often categorized separately from direct construction expenses.
How can contractors reduce general condition costs?
A: By optimizing logistics, streamlining administrative functions, and ensuring accurate budgeting for site overhead.