General Conditions
The project-specific overhead costs that the contractor incurs to manage and execute the project but that are not tied to a specific work activity.
Definition
General conditions (GCs) are the project-specific overhead costs that the contractor incurs to manage and execute the project but that are not tied to a specific work activity. They include project supervision, project management staff, temporary utilities, site office, dumpsters and cleanup, safety equipment, project insurance, and small tools.
General conditions are distinct from home-office overhead (which covers running the company itself) and from direct work costs (which are tied to a specific scope).
How general conditions is used in estimating
In an estimate, general conditions are typically a dedicated line item or section. The estimator builds the GC budget by listing each project-specific overhead cost and the duration over which it applies. A 10-month project with a $20,000 per month general conditions burn produces a $200,000 GC line in the bid. On a percentage basis GC commonly runs 5 to 12 percent of total contract value, with the percentage falling on larger jobs.
GC accuracy is one of the most overlooked drivers of estimating accuracy. A bid that underestimates GC by even a few percent of contract value can wipe out the project margin. Estimators should build GC line by line for the actual project schedule rather than applying a flat percentage. On schedule extensions or delay claims, GC cost is typically the basis of the time-impact damages calculation.
Common general conditions items
Project executive and project manager allocation. Superintendent and assistant superintendent. Project engineer or coordinator. Site office trailer and furnishings. Temporary power, water, and toilets. Dumpsters and project cleanup. Safety equipment and signage. Builder’s risk insurance. Small tools and consumables. Travel, lodging, and per diem if applicable. Each line should be sized for the actual project duration and team size, not pulled from a generic percentage.
Frequently asked questions
Q.What is the difference between general conditions and overhead?
General conditions are project-specific overhead — costs the contractor incurs because of this particular job. Home-office overhead is the cost of running the company itself (executive salaries, office rent, BD, accounting). Both load into the bid but as separate lines.
Q.How much do general conditions cost?
Typically 5 to 12 percent of contract value, with the percentage falling as project size grows. Build GC line by line for the actual schedule rather than relying on a generic percentage.
Q.Are general conditions the same as the contractor’s fee?
No. General conditions are reimbursable project costs (on cost-plus contracts) or a budgeted bid line (on lump-sum contracts). The contractor’s fee is profit and home-office overhead, separate from general conditions.
Q.How do general conditions affect change orders?
Schedule extensions trigger additional general conditions cost — every extra month of project duration carries a daily GC burn rate. That GC delta is usually included in the change-order pricing or in a separate time-impact claim.
Save time with AI-powered estimating
Producing accurate general conditions the manual way takes hours. BuildVision AI reads your drawings and generates structured takeoffs, BOQs, and priced bids in minutes.
AI takeoffs
Direct from PDF and BIM drawings, structured by spec section.
BOQ generation
Itemized bills of quantities ready for pricing or owner submission.
Quote and bid
Professional priced quotes and bid packages assembled automatically.
14-day free trial · No credit card required