No items found.
FREE DOWNLOAD: 16 Must-Track Financial Metrics for Subcontractors
Download Now →
By clicking “Accept All Cookies," you agree to let Siteline store cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
Construction Glossary >
General and Administrative Costs (G&A)
Construction glossary

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.