Holloway Consulting is a Construction Consultant and Expert Firm that stays abreast of the cases that affect our clients’ businesses. This page is for prospective clients seeking to retain a claims consultant or expert witness where a contractor claim for home office overhead or field office overhead is relevant:
Construction Claims Consultant Expert
Home Office and Field-Overhead
Contractor Entitlement
In analyzing Melka’s entitlement, the court broke its claim down into three discrete time periods. With regard to the earliest time period, November 16 through January 4, 1995, the court determined that no government-imposed delay existed because, although the dredging and breakwall work was suspended, the non-permit related work could, and did, continue. While Melka argued that the dredging and breakwater work was a significant portion of the overall contract, the court summarily concluded that, “If work on the contract continues, uninterrupted, albeit in a different order than originally planned, the contractor is not on standby“.
With regard to the second time period, from the January 4, 1995 completion of the non-permit related repair work, to February 2, 1995, the date of the government notice that the dredging work would not start for another 8 months, the government conceded that Melka was on standby, but contended that it still was not entitled to recovery because it was not impractical for Melka to obtain “replacement work” and/or that Melka’s inability to obtain “replacement work” was not due to the government-caused delay. In particular, the government argued that Melka was able to use the demobilized dredging and breakwall equipment on two other projects during this time period and that Melka continued to bid on other work during this period.
In closing, home office overhead or field office expenses are not automatically recoverable in a claim. Proper entitlement must be established first.
Read our next expert page on office overhead claims.
The Holloway Consulting Group, LLC
Construction Home Office Overhead Claims Consultants and Expert Witness
12081 W. Alameda Pkwy., #450
Lakewood, CO 80228-2701
Denver Phone: (303) 984-1941
International Toll Free: (888) 545-0666
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Email: steve.holloway@disputesinconstruction.com
Blog: disputesinconstruction.com
Web: hcgexperts.com
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