Dear PPiers,
How to establish the extent of disruption and delays on the head office overheads in the event of prolongation? How to calculate the contractor’s loss of contribution to overheads (profits)?
I know, there is Hudson formula {HO overheads (profit)% X Cotract Sum x Period of delay }/(contract period x 100} ....., there is Emden’s formula (Total Overhead Cost (Profit) x 100/Total Turnover), Eichleay’s formula............But, which one is the best? and what are its limitations?.etc. Please throw some light.
Best Regards,
Tauqeer
How to establish the extent of disruption and delays on the head office overheads in the event of prolongation? How to calculate the contractor’s loss of contribution to overheads (profits)?
I know, there is Hudson formula {HO overheads (profit)% X Cotract Sum x Period of delay }/(contract period x 100} ....., there is Emden’s formula (Total Overhead Cost (Profit) x 100/Total Turnover), Eichleay’s formula............But, which one is the best? and what are its limitations?.etc. Please throw some light.
Best Regards,
Tauqeer