Consider this: A building hasn't experienced any leaks, but its
owner files a breach-of-contract claim against you based on a
consultant's report. The consultant claims you failed to comply
with contract specifications and your workmanship was defective.
Are you liable to reroof the building or pay for the cost of
reroofing based on the breach of contract?
Or consider this: After selecting the desired shingle color from
samples you present to him, a homeowner makes a claim against you
because the installed shingles are not uniform in color and the
disparity is apparent from certain angles depending on the time of
day and how sunlight strikes the roof. Can the homeowner recover
from you the cost of removing the recently installed shingles and
reroofing the home?
The answers to these questions are based on the law of damages.
Specifically, the legal issue is: What is the measure of damages
applicable to an owner's claim?
There are two basic approaches courts apply to measure damages
for breach of a construction contact. Damages can be calculated
based on the cost to repair the contract deficiency or diminution
in value of what was constructed. In other words, an owner may be
entitled to the cost of correcting the deficiency in construction
or the difference in value between how the building was built
versus how the building was to...
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