General conditions are essential to a construction contract and establish the rules, responsibilities, and procedures that govern the project’s execution. They help ensure that all parties understand their obligations, protect their rights, and provide a framework for resolving potential disputes.
Typically, they’re included in the front section of the contract and can vary depending on the type and complexity of the project.
Let’s dive into some common elements of general conditions in construction below.
- Project Scope: General conditions outline the specific services, materials, and deliverables that the contractor is responsible for providing.
- Contract Duration: General conditions specify the duration of the contract, including the start and end dates, as well as any milestones or completion deadlines.
- Payment Terms: General conditions outline the payment schedule, methods of payment, and any penalties for late payments.
- Change Orders: General conditions include procedures for handling changes to the original scope of work. They outline how change orders are initiated, approved, and documented.
- Insurance and Bonding: General conditions typically require contractors to carry certain types of insurance coverage and may also include bonding requirements to protect against potential liabilities.
- Permits and Approvals: General conditions address the responsibility for obtaining necessary permits and approvals for the project.
- Dispute Resolution: General conditions outline procedures for resolving disputes that may arise during the project, such as mediation, arbitration, or litigation.
- Safety and Compliance: General conditions include provisions for ensuring compliance with safety regulations and other legal requirements.
- Termination: General conditions outline the circumstances that allow either party to terminate the contract and the procedures they must follow.
To sum everything up, general conditions are a crucial component of construction contracts. They provide the groundwork for a smoothly executed project by clearly defining the terms, responsibilities, and expectations of all parties involved.