When contractors encounter owner-caused delay, they are typically entitled to recover both time and damages. While direct delay damages like increased equipment costs, incresed labor costs and material escalation costs are fairly easily calculated, indirect costs such as office overhead or general conditions costs are far less so. There are several methods for calculating office overhead costs and general condition costs. If you are experiencing problems with homeowner delays, please feel free to contact us because you may experience substantially more damages as we can assist in determining whatoverhead costs are recoverable and how to calculate office overhead costs. It is also important to determine the differences between “actual cost” and “total cost” calculation methods and determine the contractor’s obligation to mitigate damages.

Ray Garcia, Esq.