Section 5.9.2.4.6 Economic Waste

LibraryConstruction Law Practice Manual 3rd Edition 2016

§ 5.9.2.4.6 Economic Waste

Generally, the measure of damages for a breach by a builder of a construction contract is the cost of repair.106 However, where an award based on this measure of damages would result in “economic waste,” the proper measure of damages would be the difference in value between the building as designed and the building as constructed. County of Maricopa v. Walsh & Oberg Architects, Inc.107 discussed the concept of economic waste as follows:

The concept of “economic waste” as it relates to changing the general rule as to damages for breach of a construction contract has been succinctly captured by comment (b) to Restatement of Contracts, § 346(1) (1932):

“The purpose of money...

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