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California Contractor Recovers Eichleay Damages Overhead; Delay-damages

Friday, September 03, 2004 02:44 pm

California Contractor Recovers Eichleay Damages Overhead; Delay-damages

A California court has allowed a contractor to recover unabsorbed home office overhead calculated according to the Eichleay formula.

The California Department of Transportation awarded a contract to Heritage Engineering Construction, Inc. to build a sound wall along a freeway. The contract mandated completion within 210 calendar days. The standard Caltrans specifications required the contractor to submit all claims arising from the work within 30 days of receipt of Caltrans' proposed final estimate of payment due.

Work was suspended due to errors in the plans and specifications, as well as the resulting [...]

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