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.

Chapter18: Life-cycle Costing

Section: Chapter Questions

Problem 16RQ

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