Loss of overheads contribution and profits in a construction dispute in the hospitality sector where a contractor claimed that a delay to a construction project caused them a loss of contribution to head office overheads and profits.
Secretariat professionals were appointed to provide expert services in an adjudication claim in respect of loss of overheads contribution and profits and to opine of the reasonableness of the application of the Hudson formula, the Emden formula and the Eichleay formula.
Secretariat damages professionals, working alongside a quantity surveyor colleague, evaluated the Claimant’s calculation prepared using the three Hudson, Emden and Eichleay formulae widely used in construction delay claims and compared them to a reasonable assessment derived from our own knowledge of overhead and profit assessments. The work involved a detailed review of the Claimant’s financial statements to determine returns which the Claimant would have achieved during the delay period and a re-calculation of the loss of overheads contribution and profits using a more appropriate methodology.
Jennifer Vanderhart, Steven Schwartz, Richard Brady, and Aminta Raffalovich authored a chapter in The Guide to Damages in International Arbitration – Sixth Edition. The guide is designed to assist the global arbitration community in understanding damages issues. The chapter is titled “The Use of Econometric and Statistical Analysis in Damages.”
Managing Directors Stuart Dekker, Joe Skilton, and Eddie Tobis authored the chapter “Compensation for Expropriation” in the 9th Edition of The Investment Treaty Arbitration Review.
Maintaining Ethics & Integrity in a Volatile Economic Environment Means Spotting the Banana Peels
Periods of economic pressure are often marked by increased rates of corporate fraud that can happen despite the presence of risk management frameworks. In this article published by Corporate Compliance Insights, Hitesh Patel offers a modern, holistic risk view that can help spot the pitfalls lurking in the way.