federal contracts

The Eichleay Formula: How Contractors Recover Home Office Overhead on Delayed Projects

When a project is delayed through no fault of the contractor, the contractor incurs extended home office overhead — rent, salaries, administrative costs — that the original bid didn't cover. The Eichleay formula is the accepted method for calculating and recovering those costs on federal projects, and by extension on many private ones. The math is specific, and applying it correctly matters for claims.