This webinar focuses on issues surrounding the conditions for recovery of claims for home office overhead. For many years, contractors have attempted to recover home office costs when a contract is delayed. The Eichleay formula computes a daily rate of unabsorbed home office overhead which is applied to the number of calendar days of compensable delay. Over the last twenty years, however, courts have established that certain conditions must be met before the Eichleay formula is accepted. Most importantly, the project must be in a "stand-by" mode, i.e. the performance period of the project is suspended rather than simply stretched out due to a variety of causes. The presentation discusses how standby situations affect a contractor on a project and whether, if there is no standby encountered on a project that is delayed, the use of the formula to compute claims for home office overhead is compromised or rejected.
Duration: 1 hour | PDHs: 1 | Subscription: Members Only
Presented by: Rocco Vespe, PE, FCMAA and Robert Dieterle