What are general conditions in construction?
General conditions has two meanings: the standard contract terms that govern how a construction project is run, and the time-based job costs of running the site, such as supervision, trailers, and temporary utilities. AIA A201 is the best-known contract form. As costs, general conditions belong to one job, unlike company overhead shared across all jobs.
Ask an attorney what general conditions are and you will hear about a contract document. Ask an estimator and you will hear about the cost of the superintendent and the job trailer. Both are right. In contracts, the general conditions are the standard terms that set out the rights and duties of the owner, contractor, and architect. In estimating and job costing, general conditions are the job-specific overhead costs of running the site, which are not part of any one trade's work.
Meaning 1: the contract document
The best-known example is AIA A201, General Conditions of the Contract for Construction. AIA describes A201 as the keystone of its conventional family of documents: it is incorporated by reference into owner-contractor agreements and sets out the relationship of owner, contractor, and architect. It covers topics such as payments, changes, time, insurance, claims, and termination. Owners then add supplemental conditions to modify those terms for the project. Together with the agreement, drawings, and specifications, they form the contract documents.
Meaning 2: general conditions costs
These are the costs that exist because the job is running, and they grow with time rather than with quantities. Typical items:
- Project manager and superintendent time on the job.
- Job trailer, storage containers, and office equipment.
- Temporary power, water, toilets, and fencing.
- Dumpsters and cleanup.
- Small tools, safety supplies, and signage.
- Permits and testing, when they are the contractor's cost.
How general conditions costs work on a real job
A GC prices a 26-week, $2.8 million retail building. General conditions are estimated weekly:
| Item | Per week | 26 weeks |
|---|---|---|
| Superintendent (burdened) | $3,400 | $88,400 |
| Project manager, 40% allocation | $1,300 | $33,800 |
| Trailer, toilets, fencing | $650 | $16,900 |
| Dumpsters and cleanup | $700 | $18,200 |
| Temporary power and water | $300 | $7,800 |
| Total | $6,350 | $165,100 |
If the job runs 4 weeks long, general conditions cost about $25,400 more. That is why delays hurt even when no trade work changes, and why delay claims ask for extended general conditions. Some owners treat general conditions as a fixed lump sum; on GMP contracts they are often a negotiated, auditable line.
Common mistakes
- Pricing general conditions as a percentage of cost instead of building them from the schedule.
- Cutting them on bid day to win, then losing money every week.
- Mixing general conditions with company overhead, so neither is tracked well.
- Not reading the A201 or the owner's supplemental conditions, which may change payment, notice, or claim terms.
Related terms
See indirect costs, mobilization, soft costs, and delay claim. Smart Business Automator's job costing and WIP views track general conditions by week against the estimate.
Frequently asked questions
Are general conditions the same as overhead?
No. General conditions are job-site costs for one project. Company overhead covers the main office and costs shared across all jobs.
What is AIA A201?
The AIA's General Conditions of the Contract for Construction, a widely used form that sets out the duties of owner, contractor, and architect and is incorporated into the owner-contractor agreement.
What are supplemental conditions?
Project-specific changes and additions to the general conditions, written by the owner or architect for that job.
How are general conditions billed?
Often as a line on the schedule of values, billed monthly in proportion to time elapsed or as a fixed amount per month, depending on the contract.
