Indirect Costs Constructions Costs (General Conditions & General Requirements)
Indirect Costs (not hard costs) include General Conditions & General Requirements
Here is the difference:
General Conditions (Overhead):
Definition: These costs are associated with the overall management and administration of the project. They are indirect costs that do not fall into direct construction labor or materials.
Typical Costs Included:
Project management and supervisory staff salaries (Project Manager, Superintendent, etc.)
Project office expenses (temporary office setups, utilities, office supplies)
Communication expenses (phones, internet)
Reporting and documentation software or tools
Licensing and permit fees
Costs associated with regulatory compliance
Travel and accommodation for management staff
Safety equipment and training for management
Legal, auditing, or consulting fees
General Requirements:
Definition: These costs are directly tied to the jobsite and the construction process but aren't specific to any single trade or item of work. They deal with the logistics and necessities of performing the work on the site.
Typical Costs Included:
Temporary utilities (electricity, water, etc.)
Temporary structures (sheds, storage, fencing)
Jobsite security and safety measures (fencing, surveillance, site safety personnel)
Traffic control measures
Sanitation facilities (portable toilets)
Dewatering and site maintenance
Dumpsters and trash removal
Site cleanup and final cleaning before handover
Equipment rental for general site use (like cranes, elevators)
Testing and inspections not tied to a specific trade
Field office for supervisory staff
Temporary access roads and site signage
I had these two bundled into General Conditions line item, top GCs seperate the two.
Just saw a comparison between multiple instituional GCs and they charge the following:
General Requirements ≈3%
General Conditions ≈7.6-8.8%
ChatGPT cleared this up for me.