General conditions in construction estimating are the costs of running a job site. No single trade owns them. They pay for the site manager and the job trailer. They also pay for the fence and the power. Cleanup and insurance are in there too. To find the price, list each cost. Then count how many weeks the job will take. Multiply the weekly costs by those weeks. On many big building jobs, the total is 5% to 15% of the direct cost.
Many bids go wrong in this spot. A crew can count every wall and door and still lose money. The trailer, the supervisor, and the dumpsters were left out. Good construction cost estimating services add these items to every price from the start.
Read a precise guide on what to include in general conditions and how they are priced
What Are General Conditions in Construction Estimating?
General conditions in construction are the costs of running the job site itself. They keep the whole project moving.
Picture a school trip. The bus and the guide are not part of any one activity. Still, the trip cannot happen without them. A job site works the same way.
A Penn State open textbook on building construction management splits overhead into two kinds. Direct overhead belongs to one project. Indirect overhead is the cost of the home office. The book calls the project kind the general conditions costs. It links them to the General Requirements section of the contract.
Home office costs are different. Think of office rent and the owner’s staff. Those are usually covered later through overhead and profit (OHP). Keep the two apart so no cost is counted twice.
A small gap in the job site lines can wipe out the profit on a job. Knowing this split is the first step to a clean bid.
Why Do People Mix Up These Two Terms?
People mix up general conditions vs. general requirements all the time. Here is an easy way to remember it. General requirements are the rules. General conditions are the bill for following them.
General requirements list what the contract asks for, like cleanup, testing, and temporary power. General conditions are the money you set aside to meet those asks.
Some firms use these words in other ways. Strong commercial estimating services label each line in the estimate for this reason. Then the team and the client read the same thing.
What Costs Should You Include?
Group the costs into three buckets. Each bucket is easy to price on its own. Together they cover almost everything a job site needs.
Some owners hire construction estimating consultant services only to review this one part of a bid. That shows how much money sits here.
Which People Costs Should You Include?
Project supervision and staffing is often the biggest line. It covers the superintendent and the project manager.
Charge individuals based on how many weeks they will be working. In addition to that, include taxes and other benefits in their pay rate to make it realistic.
Which Site Items Should You Include?
Use this general conditions checklist to catch the common site items:
- Job trailer and office setup
- Temporary power, water, and internet
- Fencing, signs, and gates
- Portable toilets and drinking water
- Dumpsters and daily cleanup
- Small tools and safety gear
- Temporary heat or cooling
- Survey and layout
Put the right things for the task at hand. This is crucial since one must always go through the specifications. Moreover, one should not forget about the contract before putting in anything.
Which Fees Should You Include?
Permits and insurance belong here too. So do testing and inspection fees that the contractor must pay. Some of these are fixed. Others grow with the contract price.
Ask your insurance and bond providers for quotes early. Then put each item on its own line. This helps to avoid mistakes.
How To Estimate General Conditions?
- Read the plans and the contract rules.
- Set the job length in weeks.
- List every cost item.
- Mark each item as weekly.
- Multiply weekly costs by weeks.
- Add the one-time costs.
- Compare the total with direct cost.
Job length drives most of the price. Weekly items grow when the job runs long. One-time items, like setup, do not. This split is why a short schedule in the bid can hurt so much later.
Here is a sample job:
The numbers are examples only. This general conditions cost breakdown shows how the pieces add up on a 30-week job:
| Item | Rate | Time | Cost |
| Superintendent | $2,500 per week | 30 weeks | $75,000 |
| Project manager (half time) | $1,400 per week | 30 weeks | $42,000 |
| Job trailer | $400 per week | 30 weeks | $12,000 |
| Temporary power and water | $300 per week | 30 weeks | $9,000 |
| Cleanup and dumpsters | $500 per week | 30 weeks | $15,000 |
| Fencing and signs | One time | Once | $6,000 |
| Total | $159,000 |
Percent rules alone are risky in general conditions in construction estimating. Size, length, and place all move the number. Use a percent only as a check. Build the real number from the list.
Section 31.105 of the Federal Acquisition Regulation states that size, length, and location affect construction costs to such an extent that advance agreements are required for such things as home office overhead. This regulation applies to government cost-based contracts. The principle applies to any bid. List your assumptions so that all can see how the price was calculated.
What Makes Job Site Costs Change From Job to Job?
No two jobs cost the same to run. These things move the price the most:
- Big jobs need more staff and more gear.
- Pay rates and permits vary by city.
- Tight sites need extra storage.
- Cold or wet months may need heat and covers.
- Some owners ask for extra reports.
- Some contracts limit what you can charge.
It is better to check each one of them before you price. Then your numbers match the real job.
What Mistakes Make General Conditions Wrong?
- A schedule that is too short. The biggest risk in general conditions in construction estimating is a short schedule. Every extra week costs money. Get an accurate timeline from the project team before pricing.
- Missing weather costs. Rain or snow can add heaters or extra cleanup. Check the season for the job. Then add what it needs.
- Counting costs twice. A cost that sits in home office overhead should not appear again on the job. Keep one home for each line.
- Not updating after addenda. New drawings can change the scope and the timelines.
How Can You Keep Job Site Costs Under Control?
A good number is not enough. You also need to watch it during the job. Follow these tips:
- Check your real spending against your estimate each week.
- Keep old totals to help with new bids.
- Recheck your numbers when plans or dates change.
- Let the whole team see every line and price.
- Get quotes early. Rentals and fees are easier to price.
- Write down what you missed. Your next bid will be better.
Small checks like these catch problems early. They also make your next estimate stronger.
Conclusion
General conditions in construction estimating decide whether a job makes money or loses it. These are the daily running costs of a site. Write down every item. Give each item a cost and a time period. Add all the costs to get your total. Then see if that total fits the normal share for your job size. When the project changes, update your numbers. Work this way every time, and your bids will stay fair and safe.
Frequently Asked Questions
Q1: Are general conditions the same as overhead?
No. General conditions are the overhead of one job site, such as the supervisor and the trailer. Home office overhead covers the company, such as office rent and owner pay. Both get paid through the bid, but they are priced in different places so nothing is counted twice.
Q2: What happens if the job runs late?
Weekly items keep costing money every extra week. A supervisor, a trailer, and cleanup do not stop. That is why a short schedule in the bid hurts. Track your weekly total so you can explain delay costs to the owner with real numbers.
Q3: Do subcontractors have their own job site costs?
Yes. Each sub has costs like a foreman and a work trailer. Those costs sit inside the sub's price. The main contractor still carries the shared site costs. Check each bid so shared items are not paid for twice.
Q4: Who writes the General Requirements?
The design team writes them in the project plans. They set rules for the whole job.
Q5: When should I update the number?
Update it whenever the schedule, scope, or addenda change. A new end date moves every weekly cost. A bigger scope may need more staff. Re-check the percent against direct cost each time so the bid stays in a sensible range.
About the Author: Jason holder
