McEwan Hall

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Universities Wisconsin: General Conditions of the Contract for Construction

The cost of compliance with general conditions in a typical construction project can vary widely depending on factors like project size, complexity, location, and specific requirements. General conditions refer to the indirect costs that support the project—things like project management, temporary facilities, safety measures, and administrative expenses—not the direct costs of labor, materials, or equipment tied to physical construction.

In percentage terms, general conditions typically account for 5% to 15% of the total project cost, with most projects falling in the 5% to 10% range for standard residential or commercial builds. Smaller projects might see percentages closer to or exceeding 10% because fixed costs (like a site trailer or a project manager’s time) don’t scale down as much as direct costs. Larger, more complex projects—like industrial or infrastructure work—might trend toward the lower end (5% or less) since direct costs dominate, diluting the relative impact of general conditions. For example, a $300,000 residential project might allocate $15,000 to $30,000 (5% to 10%) for general conditions, while a $10 million commercial project could see $500,000 or less (5%) if efficiencies kick in.

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