Home Office Overhead Examples

It is difficult to reach agreement on causes and extent of delay and even tougher to agree on the cost of delay.

Home office overhead examples. Most of those working in the construction contract claims business are familiar with 1960 decision by the armed services board of contract appeals asbca in the eichleay corporation case which recognized a contractor s right to recover unabsorbed home office overhead for owner caused delays and work stoppages. Calculation and recovery of home head office overhead james g. It is a creature of the courts in the state of new york. Office expense this category would include any office rents or lease expense or if their building is owned the cost plus a return on their investment.

Examples of variable overheads include shipping costs office supplies advertising and marketing costs consultancy service charges retainer fee a retainer fee is an upfront cost paid by an individual for the services of an advisor consultant lawyer freelancer or other professional legal expenses as well as maintenance and repair of. The other kind of overhead is home office overhead. Front office and sales salaries wages and commissions. Administrative overhead is those costs not involved in the development or production of goods or services.

Again the best example of this may be the contractor s home. Home office overhead costs. Home office overhead costs are overhead costs incurred by the contractor that are not associated with a particular project but really are necessary to support the contractor s operations as a whole. For example when a project experiences a critical and compensable.

The eichleay formula is one of the most used calculations when computing home office extended overhead costs or damages in construction delay claims construction delay claims about extended overhead are among the most complicated claims and almost always require the services of an expert to both determine damages and how those costs can be recovered. Direct cost incurred during delay period x home office overhead home office overhead owed estimated or known hooh portion of bid markup. Salaries of home office staff company officers estimators payroll clerks receptionists and others not assigned to a specific project. When construction is delayed by owner caused actions contractors request compensable delay.

Executive director corporate claims management abstract. The classic small business example of unnecessary overhead is the start up entrepreneur who rents office space in a trendy location for an operation that could be home based until growth requires more room for staff and equipment. This also includes office supplies utilities insurance phones office equipment furniture and taxes. Although the terms unabsorbed home office overhead and extended home office overhead are often used interchangeably they are not the same.