Assume you are the project manager for a construction company with an average annual volume of $500 million, which spends 1 percent on home office overhead and routinely realizes 2 percent in pre-tax pure profits. Your own project is scheduled to last 2 years and has a contract value of $100 million, 5 percent of which is for jobsite general conditions. Midway during construction, your client has delayed your project for 1 year at no fault of your own. Prepare two claims:

a. Jobsite overhead costs. Can you recover 100 percent? What would you do with your people and equipment during this 1-year shut-down?

b. Utilize the Eichleay formula to prepare a claim for impacts to home office overhead and lost fee potential.