A contractor is working on a $500,000 construction contract that was scheduled to be completed within 12 months; however, the owner delayed the contractor by 1 month. Using the Eichleay formula, compute the amount of reimbursement that the contractor can claim for home office overhead if the contractor’s total billing for the contract period was $10,000,000 and the total overhead for the contract period was $300,000.
A contractor is working on a $500,000 construction contract that was scheduled to be completed within 12 months; however, the owner delayed the contractor by 1 month. Using the Eichleay formula, compute the amount of reimbursement that the contractor can claim for home office overhead if the contractor’s total billing for the contract period was $10,000,000 and the total overhead for the contract period was $300,000.
Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter8: Pricing Generally
Section: Chapter Questions
Problem 15RQ
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A contractor is working on a $500,000 construction contract that was scheduled to be completed within 12 months; however, the owner delayed the contractor by 1 month. Using the Eichleay formula, compute the amount of reimbursement that the contractor can claim for home office overhead if the contractor’s total billing for the contract period was $10,000,000 and the total overhead for the contract period was $300,000.
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