VOLUME 5   ISSUE 4   JANUARY 29, 2016


By Bruce Jervis


The Eichleay formula, used for calculating and recovering home office overhead in a delay situation, has long been controversial. Critics say these general and administrative expenses are fixed; a delay or suspension of work in the field does not increase them. However, delay in performance results in delay in payment. If periodic progress payments are extended over a longer period of time, the contract does not cover, or absorb, fixed costs at the rate anticipated when the contract was bid. That is why these damages are interchangeably referred to as extended, unabsorbed or under absorbed home office overhead. Read more.


Featured …


This week's blog highlights from across the industry look at:


  • Design-Build efficacy
  • Futuristic building technologies around the corner
  • Improving construction safety against top four OSHA accident categories
  • 3D models for construction projects
  • Commercial construction contractors - 3 tips to building a successful business
  • Considerations for procurement and fabrication of materials from China


Read more





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