.svg)
General and Administrative Costs (G&A)
What are General and Administrative Costs (G&A)?
General and Administrative Costs (G&A) in the construction industry refer to expenses associated with day-to-day operations that are not directly tied to a specific project. These are necessary costs for a business to operate but are not easily assignable to a particular construction job. They typically include office rent, utilities, office supplies, insurance, legal fees, accounting services, salaries of non-project related staff, and other management expenses. It's important for construction businesses to carefully manage G&A costs as they can significantly impact the profitability if not monitored and controlled carefully. These costs are usually spread proportionately across various projects, based on some measure like total project labor costs. A high amount might indicate inefficiency, while a very low amount could suggest underinvestment.
Trusted by trade contractors across the country
Other construction terms
What is a Balance Sheet?
A Balance Sheet, in the context of the construction industry, is an essential financial statement that provides a snapshot of a construction business's financial condition at a specific point in time. It summarizes the company’s assets, liabilities, and shareholders' equity, thus helping to reveal the financial health of the company. For instance, assets may comprise structures in progress, equipment, buildings, and land. Liabilities are what the company owes, including loans, accounts payable, and accrued expenses. The difference between the two, when subtracted, indicates the equity of the shareholders. This vital financial document is indispensable in decision-making processes involving potential investments, lending, and credit. By presenting a clear picture of the company's capabilities, the balance sheet also aids in risk-assessment and financial planning.
What is Lump Sum Billing?
Lump Sum Billing in the construction industry refers to a fixed contract price for the completion of all work required for a specific project. This means that the contractor agrees to complete the whole project at a specific set cost irrespective of the amount of resources and time spent on the project. The contractor bears all the risk and is responsible for any cost overruns. Lump sum billing is commonly used in construction due to its simplicity, as the entire project is billed one time for one set amount.
What is a final lien waiver?
A final lien waiver (or final release of lien) is a legal document signed by a contractor, subcontractor, or supplier confirming they’ve received full payment for a finished job—including any retainage—and are giving up their right to file a mechanics lien against the property.
Signed during project closeout, a final lien waiver gives the general contractor, owner, and lender peace of mind that all bills are paid and no future claims will pop up. These waivers can be:
- conditional (only effective once the final payment actually clears the bank) or
- unconditional (effective immediately upon signing).
How Siteline Helps:
Tracking down final waivers from lower-tier suppliers while trying to collect your final payout from the GC creates major closeout bottlenecks. Siteline automates the creation, collection, and tracking of progress and final lien waivers in one place—helping trade contractors clear project titles faster, satisfy GC requirements, and unlock retainage without the headache.
Ready to end the fire drill and get paid faster?
