Eichleay Formula Calculator
A construction delay claim is rarely one number. It is usually three and they are calculated in different ways from different records: unabsorbed home office overhead, which the Eichleay formula allocates to a delayed contract; extended field overhead, the general conditions that keep running on a site whether or not work is progressing; and labor inefficiency, the productivity lost when a crew works out of sequence, stacked against other trades, or on an accelerated schedule.
This calculator computes all three from the figures on your own contract and payroll records, shows every intermediate step rather than a single total and cites the industry-standard authority for each method in the output. It runs entirely in your browser, nothing you type is uploaded.
Runs entirely in your browser. Your figures and any documents you add are never uploaded and your report is built on your own device.
Construction Delay & Extended Overhead Calculator
Combines the Eichleay formula for unabsorbed home office overhead, daily extended field overhead (general conditions) and MCAA-based labor inefficiency into one defensible delay claim. Whether a delay claim like this is even recoverable can depend on your state: many "no damages for delay" clauses are enforceable with narrow exceptions, while construction contract claims are subject to a state-specific filing deadline. Check your state's delay-claim rules ↓
Step 1: What Caused the Delay?
Step 2. The four numbers we need
Example figures. Edit them or clear them.
Step 3. Refine this estimate. 0 fields, all with defaults applied. These change the result significantly.
Eichleay: Home Office Overhead Unabsorbed overhead from owner-caused delay
Extended Field Overhead Daily general conditions during delay
Labor Inefficiency MCAA loss-of-productivity factors
Live Breakdown Chart
Full Line-Item Breakdown
| Line Item | Amount |
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Supporting documents checklistTicked items ship inside the report. Set this before you export.
Tick what you already have and add anything specific to your claim. Your selections are saved in this browser and carried into every Excel, Word and PDF report you export.
Attach these alongside this report when submitting to an owner, insurer or counsel.
Browse all document checklists for every claim type.
How the delay and extended overhead calculation works
A delay claim usually has three distinct cost buckets and conflating them is the fastest way to lose one. Unabsorbed home office overhead is the portion of your fixed indirect costs that the delayed contract stopped carrying while the job sat idle. Extended field overhead is what you actually spent keeping the site open. Labor inefficiency is the productivity you lost when the work finally resumed under worse conditions than planned.
The Eichleay formula is the recognised method for the first bucket. It allocates home office overhead to the delayed contract in proportion to that contract's share of total firm billings, converts the allocation to a daily rate over the actual days of performance, then multiplies by the compensable delay days. It is the exclusive method for unabsorbed overhead on federal contracts and it requires proof of standby: that the owner caused an uncertain delay, that you were required to remain ready to resume and that you could not take on replacement work.
Extended field overhead is more straightforward: the daily cost of trailer, supervision, utilities, rentals and insurance, multiplied by the same compensable delay period. Keep the day count identical across both, because a reviewer will check that they reconcile.
Labor inefficiency uses the MCAA loss-of-productivity factors, applying a percentage to affected labor cost based on the disruption experienced, such as trade stacking or out-of-sequence work. The factor you select should match the conditions your daily logs actually describe.
How to cite this calculation in a brief or demand letter
If you are referencing this calculation in a demand letter, claim submission or brief, the underlying authorities are:
- Eichleay Corp., ASBCA No. 5183, 60-2 BCA ¶ 2688 (1960), the origin of the home office overhead allocation method
- FAR 31.205-6 and FAR 31.205-26, allowability of labor and material cost elements on federal contracts
- MCAA, Factors Affecting Labor Productivity, the published loss-of-efficiency percentages applied to affected labor
Cite the formula and its inputs rather than the tool. The defensible position is the method plus your own records; ClaimDuke assembles the arithmetic and the citation trail, it does not supply the evidence.
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What you need before you start
The Eichleay calculation needs your original contract value, total company billings for the performance period, total home office overhead for the same period and the original and actual contract durations. Extended field overhead needs your daily general conditions rate and the number of compensable delay days. The inefficiency calculation needs base labor hours and the impact factors you are asserting.
The delay claim document checklist lists the records that support each figure, which matters more than the arithmetic: a delay calculation is only as defensible as the schedule, daily reports and correspondence behind it.
Whether the claim is recoverable is a separate question
The arithmetic here does not decide entitlement. Many contracts contain a no damages for delay clause. Whether that clause is enforceable and what exceptions apply varies by state. Construction contract claims are also subject to a state-specific filing deadline. Check the 50-state + DC delay claim rules reference before relying on any figure produced here.
Eichleay and MCAA on this page
Both methods are computed here rather than on separate pages, because in practice they are parts of one workflow: the same delay period, the same contract, the same schedule analysis. The Eichleay section allocates home office overhead by contract billings and days of performance. The inefficiency section applies MCAA-published loss-of-efficiency factors to base labor hours.
Worked example: the Eichleay formula and extended overhead
A 365-day contract is delayed 45 days by the owner. These are this calculator’s example figures, worked through by hand.
| Step | Working | Amount |
|---|---|---|
| Allocable home office overhead | $2,400,000 contract billings ÷ $9,600,000 firm billings × $720,000 firm overhead | $180,000.00 |
| Daily overhead rate | $180,000.00 ÷ 365 days of performance | $493.15 |
| Eichleay damages | $493.15 × 45 compensable delay days | $22,191.78 |
| Extended field overhead | $1,850 a day of site costs × 45 days | $83,250.00 |
| Labor inefficiency | $180,000 affected labor × 15% (MCAA, average trade stacking) | $27,000.00 |
| Total delay claim | Three separate costs, added | $132,441.78 |
Extended overhead and home office overhead are different costs and both can be claimed. Extended field overhead is what the job site itself kept costing while the work stood still: the trailer, the superintendent, utilities and rentals. Unabsorbed home office overhead is the share of the company’s fixed costs the delayed contract stopped paying for, which is what the Eichleay formula allocates. Owners most often contest the Eichleay part, because it generally requires showing the contractor stood by and could not take on other work, so keep the two figures separate in any claim.
Frequently asked questions
What is the Eichleay formula?
The Eichleay formula is the method most commonly accepted in U.S. construction disputes for allocating unabsorbed home office overhead to a delayed contract. It allocates total home office overhead to the contract in proportion to that contract's share of total billings, converts the result to a daily rate over the original performance period and multiplies by the number of compensable delay days.
Can I use this calculator for a government contract claim?
The calculation method is the same, but federal contract claims carry their own prerequisites for recovering unabsorbed overhead, including proof that the contractor was on standby and unable to take on replacement work. This calculator produces the figure; it does not assess whether the entitlement prerequisites are satisfied.
What is the difference between extended field overhead and home office overhead?
Field overhead is the general conditions cost of keeping a specific site running: site supervision, trailers, temporary utilities, fencing, equipment on standby. Home office overhead is the fixed cost of running the company, which continues to accrue whether or not any single project is progressing. They are calculated separately and should never be combined into a single daily rate.
Does the calculator produce a report I can hand to a client or a court?
The calculation, the on-screen breakdown and a one-page summary are free. A paid report assembles the same figures into a branded Excel workbook with live formulas, a Word document and a PDF, each carrying the methodology and citations. See pricing.