Glossary

General Conditions

Also known as: Job Overhead, General Conditions Costs

General conditions are the contractor's project-level overhead costs to manage and support a construction job—site supervision, temporary facilities, safety, permits, insurance, and equipment rental—billed as a distinct line item separate from the direct cost of installed materials and trade labor.

General conditions are typically priced either as a percentage of hard cost (commonly in the 5% to 15% range, driven largely by project duration and complexity) or itemized directly within the schedule of values, and cover items such as the superintendent's salary, field office trailers, temporary power and fencing, dumpsters, and safety equipment that support the entire job rather than any single trade. General conditions are related to, but distinct from, general requirements—the Division 01 specification section covering project-wide administrative and procedural requirements (submittal procedures, quality control, closeout requirements)—though the two terms are sometimes used loosely and interchangeably in practice. Because general conditions is one of the more negotiable components of a GMP proposal, owners and their cost consultants scrutinize the contractor's general conditions estimate closely relative to comparable projects during GMP negotiation.