What types of delay claims is the Eichleay Formula used for?
Compensable delays – ones where the owner or the contractor is responsible for the delay — are subject to claims for home office overhead; thus, they are subject to the Eichleay Formula. These are most often delays to a critical path activity that results in an extension of the work. Excusable non-compensable delays — or ones that are beyond the control of either the contractor or the owner, such as weather and strikes — are not subject to the Eichleay Formula.
