An Assessment of Alternatives to the Eichleay Formula for Unabsorbed Overhead in Delay Claims: Final Report

Report No: 88-R19

Published in 1988

About the report:

This report presents an assessment of the accuracy of alternatives available to calculate unabsorbed overhead in construction delay claims submitted by contractors. It reviews the alternatives available, concludes that the Eichleay method, used by many in submitting claims, is subject to error, and proposes alternatives that overcome the criticisms associated with the standard Eichleay method.

Disclaimer Statement:The contents of this report reflect the views of the author(s), who is responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the Virginia Department of Transportation, the Commonwealth Transportation Board, or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation. Any inclusion of manufacturer names, trade names, or trademarks is for identification purposes only and is not to be considered an endorsement.


Other Authors

Gwendolyn S. Harris, Gary R. Allen, Ph.D.

Last updated: December 29, 2023

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