COST TO CURE
Disputes and claims involving construction and buildings can often be summarized as “What does it cost to correct this condition?” However, the controversy may center on the extent of damage, each side defining the scope to its benefit.
On the surface, construction costs estimates are simply accounting exercises. “This quantity of construction computed at such-and-such per unit equals an amount of cost for that construction. The sum of the costs of all the individual items plus an amount for the overhead and profit equals the cost of the construction.”
An accurate estimate of probable cost based on sound logical reasoning reinforces the position of the side for which it is prepared. By contrast, flawed estimates of probable construction costs damage the credibility of an argument. The challenge in developing estimates of probable costs is developing an accurate and thorough listing of the relevant construction items and attaching realistic prices to those items.
Evaluating the cost to cure involves the following issues:
- How much of the structure is affected?
- What is the cost of demolition?
- How will the building be repaired?
- What system is to be added or replaced?
- What is the cost of the replacement construction?