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Florida Court Modifies Eichleay Rule Delay-damages; Overhead

Saturday, July 09, 2005 03:19 pm


A Florida court has affirmed the use of the Eichleay formula for recovery of unabsorbed home office overhead, while adopting the limitations recently imposed by the federal judiciary.

Broward County awarded a contract to Brooks Builders, Inc. to build a fire station adjacent to an airport runway. Airport security measures impeded the contractor's access to the site and caused numerous delays. Brooks filed suit demanding, among other damages, unabsorbed home office overhead computed according to the Eichleay formula. The County disputed Brooks' entitlement to unabsorbed overhead.

The Court of Appe [...]

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