If a paying party breaches a building contract while the project is partially completed, the builder's recovery should include what?

• A. The total contract price
• B. The amount already paid to the builder
• C. The cost of completing the building
• D. The expected future profits

Answer: (C)

When a paying party breaches a partially completed building contract, the damages should aim to place the builder in the position they would have been if the contract had been performed. The best measure is the cost to complete the building, since this covers the remaining expenses needed to finish the project under the contract terms (materials, labor, subcontractors, and any unavoidable overhead). It does not award the entire contract price, as part of that price has already been earned or paid, and it does not grant speculative future profits, which aren’t guaranteed by the breach. In short, the recovery focuses on what it costs to finish the project.