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Maryland Court Adopts Eichleay Formula Delay damages; Overhead

Thursday, January 02, 2003 12:08 pm

 
Maryland Court Adopts Eichleay Formula Delay-damages; Overhead

A Maryland appellate court has expressly endorsed, for the first time, the use of the Eichleay formula for computation of unabsorbed home office overhead incurred as a result of suspended work.

The City of Baltimore awarded a contract to Gladwynne Construction Co. for renovation of several school science laboratories. The contract called for completion of the work within 180 calendar days. Drawing errors and necessary design changes brought utility work to a halt and affected other aspects of the project. Gladwynne achieved substantial completion 489 days after receiving notice-to-proceed.

The City comp [...]

 
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