Bringing Home the Bacon – Overhead Calculations and The Law

摘要

There is a continuing debate as to which formula is the appropriate one to use incalculating 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 thecalculation given the least attention. For home office overhead the most famous or infamous isEichleay, but there are states which do not accept Eichleay, or times when Eichleay is inappropriate. Sowhat then do you do? What do the courts require? How does a contract go about recovering its fullcosts of a delay with regard to home office and field office overhead? This presentation will alsodiscuss the merits and foibles of several home office overhead formulas, cite relevant case law, andalso list those items which may be included in field office overhead costs.