Construction Contracts: What Are General Conditions?

Most people think payment to a general contractor for a remodeling project is broken down into four main categories: materials, installation labor, subcontractors and markup. But there’s a fifth category that may not immediately come to mind: general conditions.

General conditions are the costs incurred during a project that generally don’t involve swinging a hammer or installing something permanently in your home. Some contractors list some or all of the general conditions costs as line items, while others cover some or all in their markup. With a bid that is a bottom-line number, these costs are usually not visible. Here’s what you need to know.

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