General requirements define the overall goals of a construction project — they explain how procedures will occur. On the other hand, general conditions outline the administrative, logistical, and management expectations for carrying out that work.
What percentage should general conditions be?
General conditions can account for 10 percent or more of the project cost, depending on the logistics, access and complexity of the project, so they are a significant factor in a project's budget.
Is general conditions a direct cost?
In construction, general conditions refer to a variety of operations, procedures, and indirect costs that are not directly linked to construction, but are still essential for successfully executing the project.
What are the components of a construction budget?
- Property. Property costs vary greatly depending on location and project scope.
- Professional Fees and Services.
- Equipment and Tools.
- Project Management.
- Liability Insurance and Professional Bonds.
- Utilities and Taxes.
What is typically included in general conditions in construction?
General conditions are services, equipment, and materials that general contractors provide to ensure that projects are completed as drawn and specified within the project's schedule. They include costs related to site management, project management, materials handling, and trash removal.
What are general requirement costs in construction?
General requirements provide the information needed to determine pricing for materials, labor, equipment, and other expenses. Accurate cost estimates are important for project budgeting, bidding, and overall construction takeoff process.