The Hudson Formula derives from Hudson's Building and Engineering Contracts and is used for the assessment of delay damages in construction claims.
The formula is:
Head Office ÷ 100 x contract sum ÷ period in weeks x delay in weeks
cf the Emden Formula
A claimant must prove a necessity to maintain resources on the project and an inability to re-allocate them to more profitable work and must give evidence of the processes within head office to enable an assessment of the portion of overheads, if any, that are attributable to the delay caused by the breach.[1]