BRINGING HOME THE BACON OVERHEAD CAL CULATIONS AND THE LAW

摘要

There is a continuing debate as to which formula is the appropriate one to use in calculating home office overhead costs resulting from owner caused delays. Overhead is a real cost, but in developing claim damages or seeking compensation for extraordinary changes, it is the calculation given the least attention. For home office overhead the most famous or infamous is Eichleay, but there are states which do not accept Eichleay, or times when Eichleay is inappropriate. So what then do you do? What do the courts require? How does a contract go about recovering its full costs of a delay with regard to home office and field office overhead? This presentation will also discuss the merits and foibles of several home office overhead formulas, cite relevant case law, and also list those items which may be included in field office overhead costs. This article was first presented at the 2011 AACE International Annual Meeting in Anaheim, Calif., as presentation CDR.542.