A building materials manufacturer who once produced an asbestos-containing fireproofing product was being sued for the cost to remove this material from a number of buildings. In all instances, the fireproofing material was being removed and replaced as part of a renovation project. In some instances, the projects had been completed, or bid, and the total construction cost for the renovation project was known. To determine damages, it was necessary to determine what portion of the renovation costs were attributable to the replacement of the asbestos-containing fireproofing.
We prepared detailed estimates by calculating the material quantities involved and then applying unit costs for labor, materials, and equipment needed to accomplish the work. These estimates were adjusted for conditions at each building and geographical location, and the estimates were validated by comparison to actual construction costs for the complete renovation. Individual costs attributable to the asbestos content of the fireproofing were extracted from each estimate to determine the portion of the total cost that resulted from the asbestos-containing fireproofing.
Our cost analysis determined the incremental increase to the cost of a renovation resulting from the asbestos-containing fireproofing. This accurate determination of damages facilitated resolution of the claims against the manufacturer.