General Conditions in a Construction Contract Part 1
The cost of building a structure whether in the residential or commercial sector is expensive. General contractors everywhere continually balance the costs of materials and labor versus receiving funding from banks, developers, and clients. There is an additional layer of costs to consider when doing business in the construction industry. In terms of contracts, they are called general conditions and we will review them in this two-part series.
General conditions are costs incurred during a construction project that are not related to actual construction activities. These costs are also known as overhead costs. While they are not labor and materials, they are essential items for a successful construction project. As Jacksonville construction lawyers with years of experience working in the construction industry, we can tell you that it’s highly advisable to have these costs built into your contract.
Some of the most important general conditions to include in your contract are:
- Utilities: Your site office is the hub of the construction project and will need electricity, water, an internet connection, and a phone line. The costs of portable toilets must also be included. Additionally, site security is a cost that doesn’t directly apply to construction, but is critical to a successful project.
- Site Clean Up: The cleanliness of your construction site is critical for a number of reasons, including safety and OSHA compliance. These costs includes clean-up crews, materials, and dumpsters.
- Safety: Measures have to be put in place to ensure the safety of all those involved with the construction project. Safety measures may include hiring a safety officer, site signage, and personal protective equipment.
- Drinking water: Construction sites need to be equipped with drinking water for workers. There’s a continuous cost for this, especially during the summer here in Jacksonville. These costs should be considered as part of the general conditions.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.