General Conditions in Construction: The Contract Terms and the Jobsite Costs
General conditions in construction means two different things. In the contract, the general conditions are the standard terms that set out the rights and duties of the owner, contractor and architect: payment, changes, time, insurance, disputes. In a budget, general conditions are the contractor's jobsite costs of running the project, such as supervision and the site office, that do not belong to any one trade. Here is each meaning, how general conditions differ from general requirements, and what to check in a bid.
| Term | What it is | Where you find it |
|---|---|---|
| General conditions (contract) | Standard legal and business terms of the construction contract | A document such as AIA A201, or an owner's own general conditions |
| Supplementary conditions | Project-specific changes to those standard terms | A separate document that modifies the general conditions |
| General requirements | How the job is administered day to day | Division 01 of the specifications |
| General conditions (cost) | Jobsite costs of running the project, not tied to one trade | A line in the estimate, the schedule of values or the GMP |
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General conditions of the contract
AIA-style construction contracts come in two parts: a short agreement with the price, dates and parties, and a long set of general conditions with the rules. The most widely used form is AIA Document A201, General Conditions of the Contract for Construction. It pairs with the owner-contractor agreement, explained in our guide to the AIA A101. Its 15 articles show what general conditions cover:
- General provisions, including what the contract documents are
- The owner's duties
- The contractor's duties
- The architect's role
- Subcontractors
- Construction by the owner or separate contractors
- Changes in the work
- Time
- Payments and completion
- Protection of persons and property
- Insurance and bonds
- Uncovering and correction of work
- Miscellaneous provisions
- Termination or suspension
- Claims and disputes
Those articles are where the rules in our other guides come from: change orders in Article 7, pay applications and substantial completion in Article 9, bonds in Article 11.
Under A201, the contract documents are the agreement, the general conditions, any supplementary and other conditions, the drawings, the specifications, addenda, and modifications issued after signing. Public owners often write their own. Oregon State University, for example, attaches its General Conditions for Public Improvement Contracts to its CM/GC contract, plus supplemental general conditions for the project.
Supplementary conditions
Standard forms are meant to be adjusted, not rewritten. Supplementary conditions are a separate document that changes or adds to the general conditions for one project: insurance limits, payment timing, owner-specific rules. AIA even publishes a guide (A503) for writing them. When you review a contract, read the supplementary conditions next to the general conditions, because that is where the project's real terms often live.
General conditions vs general requirements
The two are easy to mix up. General conditions are contract terms. General requirements are Division 01 of the specifications, the technical side of running the job: submittal procedures, quality control, temporary facilities, closeout. Federal guide specifications label the whole division "Division 01, General Requirements," and that is where you find the rules for submittals and as-built drawings. In short, general conditions say who is responsible and how they get paid; general requirements say how the paperwork and the site are run.
General conditions as a cost
In estimates and GMP proposals, "general conditions" is the contractor's cost of running the jobsite. The Oregon State University CM/GC contract defines general conditions work as the work "required to support construction operations that is not included within overhead or general expense," and lists the items in a matrix. Items in its matrix include the project superintendent, project managers and engineers for project-specific time, and office trailer rental.
That contract also shows how an owner can control the number:
- A cap. General conditions are paid at actual cost up to a maximum not-to-exceed amount set in the GMP.
- Monthly payments over the scheduled months of construction, less 5 percent retainage.
- No adjustment for schedule, shorter or longer, unless the owner asked for the delay.
- Home office stays out. Salaries of staff at the contractor's main office are excluded from the cost of the work; that overhead belongs in the fee.
What to check in a bid
- Is general conditions a separate line? On cost-plus and GMP work it should be, so you can see it.
- What is in it? Ask for the list of items, and whether supervision and the site office are in general conditions or in the fee, so two bids compare evenly.
- How long is it priced for? Jobsite costs track the schedule, so a bid with a shorter duration should show it.
- Ask how the schedule was built. Our Frank's Noodle House build-out in the Pearl District ran from December 4, 2024 to January 10, 2025, about five and a half weeks. On a job that short, the duration in the bid matters as much as the trade prices, because the jobsite costs are priced against it.
- Read the supplementary conditions. Payment terms, retainage and insurance often change there.
Frequently asked questions
What are general conditions in construction?
Two things. The general conditions of the contract are the standard terms that set the rights and duties of the owner, contractor and architect. General conditions costs are the contractor's jobsite costs of running the project, such as supervision and the site office, that are not part of any one trade.
What is the difference between general conditions and general requirements?
General conditions are contract terms: payment, changes, time, insurance, disputes. General requirements are Division 01 of the specifications: how the job is run day to day, such as submittal procedures and closeout. In cost estimates, some contractors also use "general requirements" for jobsite costs, so ask what a line includes.
Are general conditions part of the contractor's fee?
Often not. On cost-plus and GMP contracts, jobsite general conditions are commonly a separate cost from the fee, which covers home-office overhead and profit. The Oregon State University CM/GC contract, for example, pays general conditions work at cost up to a not-to-exceed amount and excludes home-office staff from the cost of the work.
What are supplementary conditions?
Project-specific changes and additions to the standard general conditions. Owners use them to adapt a standard form, like the AIA A201, to their own rules without rewriting it.
Do general conditions costs go up if the job runs long?
It depends on the contract. Under the Oregon State University CM/GC contract, the general conditions amount is not adjusted if the job runs shorter or longer than scheduled, unless the owner asked for the delay.
The bottom line
General conditions are either the standard terms of the construction contract or the jobsite costs of running the project, and the context tells you which. Supplementary conditions adjust the terms for one job, general requirements in Division 01 run the paperwork and the site, and on cost-plus and GMP work the general conditions cost should be a visible, capped line.
Modern Northwest has built commercial projects across Portland and Southwest Washington since 2005. More construction terms are in our commercial construction glossary. Tell us about your project.
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