E. Claims for Contractor’s Unabsorbed Home Office Overheads
Claims for contractor’s home office overhead are a regular feature of construction…
Courts, in particular in the United States, have recognised the impossibility of…
One of these formulae is the “Hudson formula”, which was initially proposed in early editions of Hudson’s Building and Engineering Contracts and…
For the purpose of the “Hudson formula”, the home office overhead and profit…
An improvement on the “Hudson formula” is the “Emden formula”, which operates the same basic calculation, but in which the home office overhead and profit used are the actual overall home office figures for the contract period, based on the contractor’s accounting records (instead of the overhead and profit rate stipulated in the tender). …
Another formula (that has been commonly applied in the United States) is the “Eichleay formula”,…
The “Eichleay formula” has been subject to a number of modifications and variations, the details of which do not need to be explained in the framework of this article. …
The use of formulae has been criticised because formulae are by definition based…
One may question whether this is a realistic approach. Sayfa 274…
First, it is also based on a built-in assumption and a generalisation, namely that…
Second, it is very debatable whether it is actually possible to determine the proportion…
Third, it is generally very time-consuming and expensive to conduct an analysis of…
All of this is not to say that contractors should not make the effort to collect…
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