The first prize winning entry in the Hudson Essay Prize 2020 which was presented to the Society of Construction Law on 7th September 2021.
This paper assesses the Hudson formula, a formula created over 50 years ago that provides a means of calculating a contractor’s lost contribution to head-office overheads and profit as a result of delays to completion of a construction project. The paper seeks to address two questions: First, is the Hudson formula now redundant, following a footnoted change to the formula in 2020 that makes it indistinguishable from Emden’s formula? Second, might parties be better served by contractual provisions aimed at providing a basis for calculation of compensation that is simple and predictable and is any such solution available?
Introduction – What is the original Hudson Formula? – Some background – Troubled from the start – Price vs cost based approaches – Some alternatives to Hudson – Conclusion
The author: Ronan Champion is a Chartered Surveyor and partner of Champion Pearce LLP. He is a former chair of the Society of Construction Law.
Text: 12 pages