Better understand and analyze application of the Eichleay formula to help avoid or minimize the legal battles over such delay claims.
Delay claims can be contentious, high-stakes legal battles. Victory or defeat often turns on expert testimony of causation and damages. A contractor’s unabsorbed home office expense damage is typically the largest damage sought by the contractor. The Eichleay formula for calculating unabsorbed home office expense damage is both controversial and central to this battle. Since the Eichleay case was decided in 1960, owners, contractors, and others have frequently squared off over the application of this formula, and whether this formula is truly a reasonable estimate of a contractor’s unabsorbed overhead damages. This topic will focus on the Eichleay formula, including the various presumptions upon which it is based. Attendees will look at the validity of these presumptions in modern times and in consideration of differences in facts and circumstances that may apply to a particular construction project. Attendees will also consider various prosecution and defense strategies that can be employed to uphold, defeat, or adjust the application of the Eichleay formula.
Learning Objectives
- You will be able to explain what it means to make a claim for Eichleay damages.
- You will be able to recognize the presumptions upon which the Eichleay formula is based.
- You will be able to identify facts and circumstances that can be used to support or defeat application of the Eichleay formula for a particular construction project.
- You will be able to review effective strategies for prosecuting and defending against delay claims in which Eich-leay damages are sought.
Agenda
Introduction
- Overview
- What Are Eichleay Damages?
A Primer on Delay Claims and Damages
- Excusable Delays
- Compensable Delays
- Non-Excusable Delays
Delay Damages
- Direct and Indirect Delay Damages
- Unabsorbed Home Office Expenses
Eichleay and Its Prodigy
- Before Eichleay
- The Eichleay Case
Defending Against Echleay Damages
- Presumptions Upon Which Eichleay Is Based
- Accuracy of Eichleay
- Waiver
Conclusion
Speakers
Scott D. Cahalan,
Smith, Gambrell & Russell, LLP- Partner in the construction law section of Smith, Gambrell and Russell, LLP, an AmLaw 200 firm
- Adjunct professor of design and construction law at Georgia Institute of Technology
- General counsel to the Georgia Utility Contractor’s Association
- Practice includes all aspects of design and construction law from drafting and negotiating prime contracts, subcontracts, and purchase orders to mediating, arbitrating, and litigating construction disputes
- Drafted form construction contracts for the Associated Owners and Developers, a national organization
- Recognized by Chambers USA and Georgia Super Lawyers
- Frequent author and lecturer on construction law
- Member of the State Bar of Georgia, Northern District of Georgia, and 11th Circuit Court of Appeals
- J.D. degree, with honors, University of Georgia; B.S. degree in construction engineering, Iowa State University
- Can be contacted at 404-815-3711, scahalan@sgrlaw.com, or scott.cahalan@gatech.edu
Who Should Attend
This live webinar is designed for project managers, construction managers, contractors, subcontractors, construction professionals, engineers, architects, and attorneys.
