What is General and Administrative Costs (G&A)?

General and Administrative Costs (G&A) in the construction industry refer to the expenses incurred by a construction company that are not directly tied to the actual construction activities. These costs are necessary for the day-to-day operation of the business and include items such as office rent, utilities, salaries of administrative staff, insurance, legal fees, and office supplies. G&A costs are essential for the smooth functioning of a construction company and are typically considered as overhead expenses.In the construction industry, G&A costs are crucial for managing the administrative and operational aspects of a construction project. These costs are necessary for ensuring compliance with regulations, managing contracts, processing payments, and handling communication with clients and subcontractors. Although G&A costs do not directly contribute to the physical construction of