What does a contractor do when it can clearly establish a breach of contract by an owner, or the failure of a design professional to meet its standard of care, but can’t specifically tie those breaches to the contractor’s damages? Under certain circumstances the contractor can recover the difference between its actual total costs to perform the work and its contract price (minus the total amount paid). This is known as the “Total Cost Method” (TCM) of recovering damages; in this article Tom Cosma and Mitch Taraschi, partners in Connell Foley's Construction Law Group explain the stringent requirements of a TCM claim, and examine cases where TCM awards have been upheld and where they have been denied.
To read the full article, please see the link "Proving a Total Cost or Modified Total Cost Method Claim" under "Related Materials" below.