General conditions and requirements for construction projects

There are certain items that every company uses in every construction project they undertake, and they all fall into the general conditions category. However, in this area of ​​work, these same items can also be delegated to a general requirements category.

It doesn't really matter what a person calls these items, as they are all necessary, but there is one thing every company needs to do with them: include them in the overhead costs of every project. Some companies forget about these costs because they are items they tend to use every day, no matter where they are. However, not including them in indirect costs can prevent any business from making a profit every year.

All your general conditions, or general requirements, charges can normally be placed on a separate line in a contract clause. If this is not possible in some cases, it is recommended that companies spread costs across a few different headings to facilitate cost recovery.

It's not always easy to remember which items can be justified as general conditions and requirements, so we've created this handy list.

Here are the most common items that many companies include in their general conditions and requirements:

The pre-development fee

All the time a company dedicates to preparing the budget, proposal and planning can be added together and included in the general conditions category. This is one of the main ones that companies forget all the time!
Utility Services

A company uses a lot of electricity, heating and water, in addition to having to pay for the internet and telephone lines. All of these service costs add up, as do the costs of security and alarm systems. Some companies don't even realize that portable toilets also need to be included in this section of the general conditions category!

1. Pre-development Fee:
   • The pre-development fee encompasses the time and resources dedicated to preparing the budget, proposal, and initial planning for the project.
   • Companies often neglect this aspect, which can lead to underestimating the costs and resources needed for the project.
   • It is essential to properly consider the time and resources invested in this initial phase to ensure an accurate estimate of the total project costs.
2. Public Utility Services:
   • Utility services, such as electricity, heating, water, internet and telephone lines, are fundamental to the functioning of construction operations.
   • These costs must be included in the overall project costs to ensure an accurate budget estimate.
   • In addition to traditional services, it is important to consider the costs associated with security and alarm systems, which contribute to workplace safety.
   • Portable toilet facilities should also be included in this category, as they are essential to meet the needs of workers on the construction site.

By addressing these aspects in the project's general conditions and requirements, companies can ensure effective resource management and avoid financial surprises throughout the construction process.

Vehicles

All vehicles that employees use to get to work, plus gas, maintenance and registration fees can be accounted for and included in this fee.

• Vehicles used by employees to get to the workplace represent a significant portion of the project's overall expenses.
• Associated costs include not only purchasing or leasing the vehicles, but also ongoing expenses such as gas fees, maintenance, and registration.
• It is essential to account for all of these costs and include them in the overall project expenses for an accurate budget estimate.
• Additionally, logistics related to transporting employees and materials to the job site must be considered to ensure efficient and uninterrupted operations.

Recycle bins

Every construction site needs a dumpster to store trash and debris, so it must fall within the lines of general requirements or general conditions. However, most companies forget to include the fee they need to pay to dispose of office waste, even though it is a necessary part of doing business.

• The presence of trash cans is essential on any construction site for the proper disposal of trash and debris.
• These bins should be considered as part of the general requirements or general conditions of the project, as they are essential for keeping the site clean and organized.
• Many companies neglect to include the fee associated with office waste disposal, which is a necessary and inevitable part of business operations.
• It is crucial to calculate and include this expense in the project budget to ensure that all waste management needs are met properly and legally in accordance with local regulations.

Rainwater Pollution Prevention Plan

Some workplaces require companies to have a plan to prevent erosion, although companies should always have a plan in place in case something goes wrong. This plan typically includes the use of dust control systems, water trucks, and even hay bales. Although companies may not need this plan on every project, it should still be included in the cost as it may be needed at some point and is an indirect cost.

• In certain workplaces, companies are required to have a plan to prevent erosion and rainwater pollution. This plan is crucial to prevent environmental damage, protect water resources and comply with government regulations.
• Generally, the plan involves implementing dust control measures, such as using water sprinkler systems or water trucks to maintain soil moisture.
• Additionally, strategies such as placing hay bales in erosion-prone areas can be adopted to stabilize the soil.
• Although not all projects require the immediate implementation of this plan, it is essential to include the associated costs in budget estimates, as its implementation may be necessary at some point.
• It is considered an indirect cost, but its inclusion from the beginning prevents financial surprises and ensures the company's readiness to deal with environmental issues as necessary.

Tools and equipment

Every company has a ton of tools and equipment, because if they didn't, they wouldn't be able to do the work they do! These tools and equipment need to be paid for in some way and also replaced when necessary. The cost of all of these items can be included in the general conditions and general requirements line of a quote.

• Tools and equipment are essential for carrying out construction and maintenance activities on a construction site.
• From hammers and saws to heavy machinery, such as excavators and cranes, these items are essential for the efficient execution of projects.
• Companies need to acquire and maintain a variety of tools and equipment to meet the demands of different types of projects and tasks.
• The cost of purchasing and replacing these items must be considered and included in budget estimates as part of the project's general conditions and requirements.
• In addition to the initial acquisition costs, expenses for maintenance, repairs and upgrades must also be considered to ensure the continued operability of the equipment throughout the project.
• The inclusion of these costs in the general conditions line allows for an adequate allocation of resources to ensure that the necessary tools and equipment are available when needed, contributing to the overall efficiency and effectiveness of the enterprise.

Cleaning

The cleaning process at the construction site is as important as the rest of the work, as it prevents accidents from happening later. After all, no company wants to be held responsible because someone walking barefoot stepped on a nail or someone cut themselves picking up a piece of broken glass.

• Cleaning the construction site is a crucial step to ensure safe and efficient operations.
• Regularly removing debris, debris and hazardous materials from the workplace significantly reduces the risk of accidents and injuries among workers.
• Additionally, maintaining a clean and organized environment contributes to operational efficiency by facilitating access to tools, materials and work areas.
• Responsibility for construction site cleaning is usually assigned to the management team or contractors who specialize in cleaning services.
• Costs associated with cleaning, including labor, equipment, and cleaning supplies, should be considered as part of the project's overall expenses.
• Investing in adequate workplace cleaning not only promotes a safer environment for workers, but also reflects positively on the company's image, demonstrating its commitment to safety and quality standards.

The rest yard

Not all materials and equipment fit on a construction site because there is usually not enough space. This means that companies need to use what is called a deposition yard, which is located off-site. The costs included in the disposal yard are fences, security, lighting, walkways, covered areas and equipment needed to unload the materials.

• The storage yard is an area outside the construction site designated for storing materials and equipment that cannot be accommodated at the main site.
• Typically, materials are unloaded and temporarily stored in this area until they are needed at the job site.
• The costs associated with the deposition yard include several expenses, such as:
  • Fences: To delimit and protect the storage area.
  • Security: Implementation of security measures to protect stored materials and equipment against theft, vandalism or damage.
  • Lighting: Installation of adequate lighting to allow night operations and ensure safety throughout the period.
  • Walkways: Structures to facilitate safe and convenient access to stored materials and equipment.
  • Covered Areas: Construction of roofs or sheltered structures to protect materials against bad weather, such as rain, intense sun or snow.
  • Unloading Equipment: Devices and equipment necessary to move and unload materials from the storage location to the work site.
• Effective planning and management of the deposition yard is essential to ensure the timely availability of materials and equipment required for construction activities, minimizing costs and optimizing available space.