Estimating

General Conditions

Indirect project costs: site office, supervision, dumpsters, temp utilities, safety, and similar project-level overhead.

General conditions (sometimes "GCs" — distinct from General Contractor) are the indirect costs of running a construction project that are not tied to a specific trade scope. Typical general conditions line items include project supervision (project manager, superintendent), site office trailer, temporary utilities (power, water, telecom), dumpsters, port-a-johns, security fencing, signage, daily cleanup, safety gear, project documentation, and similar project-level overhead.

General conditions are typically budgeted as a separate line in the estimate (often 5 to 12% of total contract value on commercial work) or as a fixed monthly cost. They are owner-visible (typically itemized on the SOV) and distinct from contractor home-office overhead and profit, which are typically marked up on top of direct costs and general conditions.

Frequently asked questions

What are general conditions in a construction budget?+

Indirect project costs: site supervision, site office, temp utilities, dumpsters, port-a-johns, security, safety gear, daily cleanup, project documentation. Typically 5 to 12% of contract value on commercial work.

Are general conditions the same as overhead?+

No. General conditions are project-specific indirect costs (the cost of running this specific project). Overhead is home-office cost (rent, salaries, accounting) allocated across all projects. They are separate line items on most commercial estimates.

How are general conditions billed?+

Typically as a fixed monthly amount or as a percentage of progress per phase. Billed via the schedule of values like any other line item. Some contracts treat general conditions as a not-to-exceed amount with monthly drawdown.

Related terms