Construction defect disputes can become increasingly complex when deficiencies affect not only the physical property, but also project schedules, business operations, and the cost of reconstruction. Accurately evaluating those impacts requires an understanding of how the repair process will unfold and how delays translate into financial damages.
YA Group was engaged in an ongoing construction defect matter involving a unique food hall facility containing 34 individual commercial kitchens under one roof. After improper construction materials were identified, significant portions of the interior required demolition and reconstruction to meet applicable code requirements. With reconstruction costs expected to exceed $20 million, YA Group brought together forensic accounting expertise and Planning & Construction Advisory Services (PCAS) to evaluate the resulting delays and damages.
Challenge Overview
The construction deficiencies created impacts extending beyond the cost of physical repairs. Determining conditions for the litigation required evaluating the original construction delays while also establishing a realistic schedule for completing the extensive reconstruction.
Because the facility’s ability to operate is directly tied to the repair timeline, accurately evaluating delay and business interruption conditions required a defensible understanding of how long the reconstruction should reasonably take. YA Group’s damages analysis is currently estimated between $5 million and $7 million, with additional delay-related impacts continuing to be evaluated as the project progresses.
YA Group’s Area of Impact
YA Group’s forensic accounting experts completed an initial report addressing delays associated with the original construction and is now supporting the next phase of the analysis. Working alongside the team, PCAS developed the reconstruction schedule needed to establish a realistic repair timeline and support the evaluation of resulting conditions.
The integrated approach streamlined communication and provided the client with a more coordinated work product. By connecting construction scheduling expertise with forensic analysis, YA Group is helping provide a clearer and more defensible understanding of the project’s financial and schedule-related impacts.
