Head office overheads calculator

Head office overheads are the costs of running your business that each job helps to pay for, such as offices, directors and insurance. When a job overruns, it can tie up your firm without earning more towards them.

Enter an evidenced period relevant to the loss you are examining. An extension of time does not itself establish financial entitlement. This tool neither analyses delay nor proves recoverable loss.

Compare the formula outputs with the actual overhead evidence and the circumstances of the delay. A formula estimate is not proof of loss or entitlement. Keep the input sources and explain why the selected method is appropriate; do not add overlapping recovery twice.

Hudson takes the head office overheads and profit percentage in your tender. It applies it to the contract sum per week, or per day, then multiplies by the period of delay.

Emden works the same way, but takes the percentage from your company’s accounts: total head office overheads and profit divided by total turnover.

Eichleay shares out your actual head office overheads by this contract’s share of your billings over the actual period. It divides that by the actual period of the work, then multiplies by the period of delay.

Each step is rounded as it is shown: money to the penny, and percentages to two decimal places. So the working adds up when you check it.

The formulas are an approximation, not a record of what you actually lost. A formula claim usually also needs evidence that the delay stopped you taking other work. The High Court said so in Walter Lilly & Company Ltd v Mackay, at paragraph 543.

Hudson uses your tender percentage, while Emden uses your accounts. Eichleay originated in the United States. No formula is automatically appropriate for your contract claim.

Use your records first where they show the actual cost, such as director time spent on the delay. A formula does not replace evidence of entitlement, causation and actual loss.

Delay and disruption cost recovery considers the calculation alongside the event records and contractual basis, rather than treating the formula result as an established entitlement.