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Archive: 2016

California Court of Appeal Endorses Eichleay Formula for Calculating Home Office Overhead Damages

Posted January 13, 2016News

Most contractors are familiar with the Eichleay formula, undoubtedly the most common method of calculating home office overhead damages on construction projects in the United States. Nonetheless, it is not uncommon for a California contractor or construction attorney pursuing such claims to be met with cries of “Eichleay has never been approved by a California appellate court!” from the other side. A December 30, 2015 decision from the Sixth Appellate District should finally silence such cries, and confirm that Eichleay is the method for calculating home office overhead damages in California.

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