HOME OFFICE OVERHEAD

The costs of delays involve many elements. Naturally, the direct costs are affected, but a contractor's efficiency, construction schedule, available favorable weather, impact costs, and even home office overhead may be affected. If the owner causes a compensable delay that forces the contract into a longer time frame, the contractor may be entitled to unabsorbed or extended home office overhead. There are several methods for calculation of the value of extended home office. For detailed information see the link below.

http://www.icoste.org/ZACK.pdf