General Conditions in a Construction Contract Part 2
In the first part of our series on general conditions, we discussed the basic overhead costs that should be included in a construction contract. These are costs that don’t directly lead to the building of a structure but are critical for a construction site to operate properly. These include a functioning site office, site safety measures, and clean up activities, among other items.
In the second part of this series, we will introduce several more items that you should consider including as part of the general conditions within your contract. For more information about contracts or if you need help putting together one that protects your interest, it’s always a good idea to contact a Jacksonville construction attorney.
General Conditions to Consider
While some contractors mark up their services to account for certain operational costs, it’s preferable to list them as line items. General conditions can include:
- Building permits: There’s a permitting process in nearly every part of the country. This cost is typically passed on to the client.
- Material handling: Typically, there is a fee involved in having materials delivered to a jobsite. There are also costs for unloading as well as setting up a staging area or lay-down yard to receive materials. These should be accounted for in general conditions.
- Certain project staff: There are specific staff that don’t work directly in the construction process, but are critical to the success of any project. This staff includes superintendents, safety officers, and quality assurance managers.
- Background checks for subcontractors: It’s critical from a quality and safety standpoint to have the right people working on your jobsite. Part of that process is conducting background checks for site workers, including subcontractors, who may be brought in to perform specific tasks. This cost can be passed on to the client.
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.