What General Conditions Are Included in a Construction Contract?

House Estimates

If you’re about have renovations done on your home and have to sign a construction contract with a general contractor in the near future, you might be feeling a little concerned. As a lay-person who doesn’t work in the construction industry, the idea of having to comprehend the finer points of a construction contract can be worrisome. This guide is here to help you understand the basics.

As you look over the next several paragraphs, you will see information about some of the general conditions that will be included in any well-written construction contract. It bears noting that “general conditions” are a unique category, set apart from labor costs, materials expenses, subcontractors’ wages, and, of course, the contractor’s profit markup. This means there should be five total sections to review when you receive your contract.

Site management – This general condition involves everything related to maintaining and managing your property while your remodeling job is going on. If, for instance, the power is going to be shut off in your house and a temporary pole has to be put up to power generators and other power tools, that information would be detailed. It may also include information about how the site will be cleaned, both on a daily basis and at the end of the project.

Material handling – This general condition involves everything related to moving any necessary materials and tools to your property and, in some cases, around your property (this generally only applies on farms and anywhere else with a lot of acreage). Materials for construction jobs are often delivered by suppliers, but when the driver does not unload the goods or put them where they need to go, the task falls to your contractor and his or her team. This is where the material handling fee comes into play.

For clients in our service area of North Carolina and South Carolina, it also bears noting that the location of your home could impact this fee. If, for example, you reside in the mountains of North Carolina and your home is very remote or difficult to get to, you may find yourself paying an additional surcharge. This will not be the case with every contractor, but you should be aware of the possibility.

Project management – This general condition involves everything your contractor has to do that is related to overseeing your remodeling job. This can include a wide variety of tasks, including getting bids from subcontractors, making sure things stay on-budget, working with an architect to develop blueprints, obtaining any necessary permits, and scheduling the delivery of any materials and furnishings that are required to complete the project. Depending on the scope of your renovation, there may also be other duties that fall into this category.

There is no set rate that general contractors charge for prevailing conditions. In many construction contracts, these factors end-up comprising about 10% of the total cost of the project, but this could differ depending on your specific situation. The team at Hatch Homes works closely with our clients throughout the Carolinas to make sure they understand every aspect of our contractual agreements. If you choose us for your next project and you have questions, you can trust that a knowledgeable staff member will be available to assist you whenever you need us.

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