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Financialaka: general conditionsaka: GC overheadaka: project overhead

General Conditions Cost

In Plain English

The costs of running the construction site itself, such as the site trailer, superintendent, and temporary power.

Definition

General conditions costs are the project-specific overhead costs required to support construction operations, including the site superintendent's salary, project engineer, temporary facilities (trailer, fencing, utilities), safety equipment, surveying, equipment rentals, and insurance premiums. General conditions are included in the contractor's bid or GMP as a separate line item and typically represent 5–15% of total construction cost depending on project size and duration.

Why It Matters in Bidding

General conditions cost is a significant, time-driven component of any bid or GMP, so estimating it from a realistic staffing and schedule plan protects margin and keeps the number competitive. Owners often review this line closely in negotiated work, and because it accrues with duration it becomes the basis for extended-overhead recovery when the schedule is impacted.

Example

For an 18-month hospital fit-out, the estimator prices general conditions cost month by month, covering the superintendent, project engineer, fencing, temporary power, and equipment rentals, landing near 11 percent of construction cost.

Related Terms

GC MarkupJob CostingSchedule of ValuesMobilization Cost

Frequently Asked Questions

Common items are the site superintendent and project engineer salaries, project trailer and field office, temporary utilities, fencing and barricades, safety equipment, surveying, small tools and equipment rentals, dumpsters, and cleanup. Some contractors also place project-specific insurance and permits here. The exact contents follow the contract's Division 01 requirements.
In a guaranteed maximum price, general conditions are usually a detailed, schedule-based line item the owner can audit, built by pricing each staff role and field resource over the months it is required. Owners often cap or negotiate it, so a defensible, line-by-line buildup tied to the schedule is essential.
Most items are time-dependent, paid per month or day, so each added month of schedule adds another month of superintendent salary, trailer rental, and temporary utilities. This is why contractors track extended general conditions when pursuing delay claims, quantifying the daily site overhead caused by an owner or unforeseen condition.

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