Chapter
Apr 26, 2012

Unabsorbed Overhead: Eichleay and Other Methods

Publication: Construction Research Congress 2009: Building a Sustainable Future

Abstract

The technique for calculation of home office overhead damages, a claim category on construction projects, has been widely debated. The Eichleay Formula is a well known technique for such claims that evolved over the past 48 years. This paper provides concepts of compensable home office overhead damage due to a project delay, the evolution and required prerequisites for using the Eichleay formula, and alternate formulas and techniques used. A "Direct Method" is proposed, which is simpler to apply. In the final analysis, obtaining a 100% accurate estimate of home office expenses is impractical, if not infeasible.

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Go to Building a Sustainable Future
Construction Research Congress 2009: Building a Sustainable Future
Pages: 181 - 190

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Published online: Apr 26, 2012

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Amarjit Singh [email protected]
F.ASCE
Dept of Civil Engrg., Univ of Hawaii, Honolulu, HI 96822. E-mail: [email protected]
Thomas Taam [email protected]
U.S. Army Corps of Engineers, Fort Shafter, HI 96819. E-mail: [email protected]

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