Understanding General Conditions in the Construction Realm

There are several simple elements that help define any kind of major industrial service or project being carried out, and one of these in many construction and related settings is what are known as general conditions. General conditions describe a number of different terms or specifications that may be present for the project in question, and they’re important to be aware of if you’re ordering any such project.

At Redi, we’re happy to help with these kinds of needs for any of our services, which include the entire realm of industrial solutions. We offer everything from industrial construction setup and excavation services to facility maintenance, dumpster services and a full range of shut-down solutions as well. What are general conditions, where are they found within industrial projects, and which sorts of costs are often laid out within them? Here’s everything you need to know.

Basics on General Conditions

From a very broad standpoint, general conditions within any industrial construction or related setting are those that establish the basic working parameters for the project in question. This can involve everything from specifying start and end dates to indicating which workers are authorized to be on-site. In some cases, there may also be financial specifications within these general conditions as well.

Generally, there are three areas of industrial projects where general conditions will be utilized:

• Project contract: First and often most importantly, general conditions are found within the contract for the project itself. They are meant to define the relationship between all parties involved, including the contractor, any subcontractors and the owner or owners of the property in question. For instance, project contract provisions may state that the contractor will perform all work in a safe and efficient manner, or that any workers brought in from outside sources must be properly authorized.
• Project specifications: In addition to being present within the contract, general conditions may also be found within the project specifications. These are meant to lay out all of the specific requirements for how the project is to be carried out, and they often contain a number of different provisions that must be adhered to in order for work to proceed as planned.
• Project costs: Finally, general conditions may also be used to establish the various costs associated with carrying out the project. This can involve everything from the cost of materials to the price of labor, and it’s important to have a clear understanding of all such costs before work begins.

Keep these basics in mind, and you’ll be well on your way to understanding general conditions in the construction realm.

Kinds of Costs Often Covered

As we just noted, costs are often a key area where general conditions play a role. What are some of the cost types that will often be found here? A few stand out in particular:

• Project management: Many major projects require the services of a professional project manager, and the cost of these services will often be covered under general conditions. For example, if you’re overseeing a large construction project, you may need to hire a project manager to help ensure that everything is proceeding as planned.
• Site management: In addition to project management, there may also be a need for site management services. This can involve everything from security to on-site administration, and the cost of these services will often be covered under general conditions as well.
• Materials handling: For many construction projects, the cost of materials handling will also be included under general conditions. This can involve everything from the cost of renting a crane to the price of hiring workers to load and unload materials.
• Trash and debris removal: Finally, the cost of removing any trash or debris from the site of the project will also often be covered under general conditions. This can be an important service, as it helps to ensure that the site is clean and safe for all workers.

Comparing General Conditions and General Requirements

While we know it can be a bit confusing given how similar their names are, general conditions are not the same as general requirements. So, what’s the difference between the two?

We’ve already gone over general conditions above, so you know what those are. Comparably, general requirements those that detail the specific processes and procedures that must be carried out in order for the project to be completed successfully. In other words, general conditions set forth the basic framework within which the project will take place, while general requirements detail the specific steps that need to be taken in order to complete the project.

Why are both of these important? Well, as you might imagine, general conditions are important because they provide a basic outline for how the project is to be carried out. General requirements, on the other hand, are important because they ensure that all of the necessary steps are taken in order to complete the project as planned.

Are These Costs Considered Overhead?

For many of our clients, knowing whether or not the costs associated with general conditions are considered overhead is important. We’re here to give you a definitive answer: it depends.

How so? Well, it really depends on how you define overhead costs. For some people, any cost that’s not directly related to the project at hand is considered overhead. Others take a more narrow view, and only consider costs that are not directly related to the project AND that are not necessary for the project to be completed successfully as overhead.

For more on the realm of general conditions for any industrial service or project, or to learn about our scaffolding, dumpsters, porta potty services and numerous other programs for industrial needs, speak to our team at Redi at your convenience.