General Conditions Limits


I'm seeking a clearer definition of General Conditions that I can hang my hat on. I am an architect drafting an AIA B133 agreement,  The state and federal funding organizations have strict restrictions on the construction manager's Profit (6%), Overhead (2%), and General Conditions (6%).  They don't though define what they consider GC's to be. I need to , delineate what falls under General Conditions and what merits a separate line item in the construction cost (schedule of values). This poses a significant challenge. Simply including everything listed under GCs in the AIA A201 would easily exceed the allowable percentage 2-3 times fold.

Certain elements like management personnel, field office expenses, project safety measures, on-site communication infrastructure, and office supplies undeniably fall under the umbrella of General Conditions.

However, items such as permitting, bonding (given their variability from project to project), builders risk insurance, staking surveying, rental equipment (e.g., forklifts), and temporary power seem more appropriate for separate line items in the schedule of values. This distinction in my mind stems from the fact that these costs are largely beyond the construction manager's control. If we're to hold the CM strictly to a 6% allocation, they must have influence over or be able to manage the expenses associated with these items.

I'm open to thoughts and insights on this matter. Despite extensive research into the definition of GC costs, it's evident that there's no consensus among various sources. Any comments or recommendations for reputable sources or literature that could provide clarity would be greatly appreciated. 

Apr 18, 24 6:00 pm

Simplest terms... General Conditions are staff costs associated with managing/running the job site. At a minimum, this would be a superintendent, project manager and project engineer. Depending on the size and scope of the project, you may need more than 1 person for each of those roles. Certain owners may require specific safety and QA/QC roles as well within the General Conditions definition.

Temporary facilities to support the construction of the project I typically call General Requirements. These are costs in addition to and outside of General Conditions. That includes things such as job trailer, electrical and internet charges, porta potties, perimeter fencing, etc. I sometimes put a job site fork lift and tower crane there too, but some owners prefer hoisting to be broken out separately.

Permits (building permit) are generally by the owner, or pulled by subcontractors (mechanical/electrical/fire protection). I would never assume permits in GCs. Similarly, bonding and builders risk and other insurances required to be carried would be outside General Conditions. For public works contracts I deal with, the overhead, profit, bond, general liability insurance, and B&O taxes are all contained within the % fee we are charging on the cost of the work. 

Different owners/contracts have different definitions. If your Owner has specific caps as a percentage on these items, they should have a definition of what is included. Rarely have I seen a public entity not have these clearly defined. 

Apr 19, 24 6:36 pm  · 
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