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<br />, '..... <br /> <br />, <br />. <br /> <br />. <br /> <br />," <br /> <br />Section I - Unabsorbed Overhead, <br /> <br />Unabsorbed Overhead is the fixed home office operating expenses we <br />incur on a continuing basis when the level of project activity drops <br />below the planned or scheduled level. Some of this overhead became <br />unabsorbed when Weeminuche Construction Authority's project work load <br />was reduced due to the owner-caused partial suspension of the work. <br />The project was bid with the expectation that the workload and billings <br />would abeorb B certain portion 01 Ii~ed home ofIice expenses based upon <br />the value of the work performed and the original contract time. It is <br />apparent that the performance period will need to be extended to <br />compensate for the owner-caused reduction of the workload and billings. <br />This has reduced the monthly cash flow from this contract causing a <br />portion of the home office overhead to be unabsorbed. Section I <br />presents our claim to recover the unabsorbed home office expense. <br /> <br />Weeminuche Construction Authority recognizes that while we were totally <br />unproductive in Division II pipeline construction after March 2, 1989 <br />there was productive activity, 'but at a reduced level, in Division III <br />work. We were not, in effect, on total suspension of the- contract but <br />on partial suspension. Our calculations will provide an appropriate <br />reduction in the unabsorbed overhead for all work that was accomplished <br />in Division III and work other than pipeline construction in Division <br />II after the March 2, 1989 date. <br /> <br />The total direct <br />determine the cost <br />unabsorbed overhead. <br /> <br />cost <br />and <br /> <br />allocation <br />distribution <br /> <br />method is used in this claim to <br />of general and administrative <br />