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General Conditions
Practical Law Glossary Item w-002-6879 (Approx. 3 pages)
Glossary
General Conditions
As used in connection with a construction project and in the context of:
- A construction agreement, a term that states the legal relationships of parties involved in a project.
- Construction management, a term used to refer to a general contractor or construction manager's compensation for overhead, general expenses, and indirect costs for operating a project site.
In the context of construction agreements, the general conditions detail the responsibilities of the owner, contractor, architect, and subcontractors including:
- Payment procedures.
- Change order procedures.
- Notice of delay or field changes provisions.
- Project safety programs.
- Insurance requirements.
- Claims and disputes procedures.
- Indemnification requirements.
- Termination of contract provisions.
For further guidance on standard construction documents incorporating general conditions of the contract, see Practice Note, Standard Construction Industry Documents: Overview.
In the context of construction management, general conditions a contractor is typically compensated for include:
- Site equipment and operations.
- Project oversight and management.
- Material handling.
Depending on the pricing mechanism for the work, the parties negotiate the costs included in general conditions and how they will be paid during the project.