What is the Eichleay formula?
The Eichleay formula is the standard US method for calculating unabsorbed home-office overhead during a compensable delay, particularly on federal contracts. It allocates head-office overhead to the delayed contract based on billings and the number of delay days when the contractor was on standby and could not take replacement work.
What delay damages can a contractor recover?
On a compensable (owner-caused) delay, a contractor may recover extended field overhead, unabsorbed home-office overhead (often via Eichleay), idle equipment and labor, and material/labor escalation — subject to notice requirements and any no-damages-for-delay clause in the contract.
What is concurrent delay in US construction law?
Concurrent delay is when owner-caused and contractor-caused delays overlap in time. Courts commonly grant a time extension but deny delay damages for concurrent periods, reasoning the contractor would have been delayed regardless. Proving the delays were not truly concurrent is often decisive.
Are no-damages-for-delay clauses enforceable?
In many states they are enforceable but subject to exceptions — such as delays caused by the owner's active interference, bad faith, or delays not contemplated by the parties. Federal contracts have their own rules. Read the clause and check your state's exceptions.