What about creating a cove with a cricket at the inside corner out of asphalt instead? I see a few problems with your flashing design that maybe you just didn't elaborate on. First, you are still going to have to deal with failing caulk, so that problem didn't go away. The caulk cracks, the water still goes through. So you are not saving yourself that work. Additionaly, you will have sharp metal edges exposed. Secondly, you are just going to leave the top of the flashing open? Water that does get in now will get trapped for sure. You would need to attach a cap flashing, fastened to the wall and sealed with caulk that overlaps the top of your coved base flashing by a few inches. Then the inside corner presents another problem. How are you going to bend the flashing here and have it sealed? Unless you can find something prefab, you might make one piece turn into more of a bend than a curve as it reaches the corner, create a top and bottom tab at one end. The bottom tab bends upward against the perpendicular wall, the top tab wraps the corner. Then a new flashing on the garage wall butts into the corner and continues on. The cap flashing simply bends the corner.

What w.ross is talking about is true--the air/water gap is the small amount of space some window manufacturers leave between the cladding and the wood frame. It allows any water that may penetrate the window to drain away from the wood. Manufacturers that don't leave the gap often have all this hype about how their windows are treated to help prevent rot. That's because if water gets in their windows it has no way out & the cladding sits right up against the wood so the water has no place to go except into the wood. This forum is actually where I learned about the importance of this feature. There used to be a few good threads on this topic on the forum, but I can no longer find them. I know they were very useful for me when we were looking at the different window options out there. There were some I remember that had excellent photos of the different window construction methods used. If you go to the Marvin site and zoom in on the photo of the cross-cut of the window you will see the small space between the cladding & the wood (hover over the photo titled 'tri-pane' in the link below to see the space zoomed). http://www.marvin.com/windows/wood-double-hung-windows/glass-energy-efficiency-and-screens/ Now click on the Jeld-Wen Site-Line EX link below to see how their cladding is applied in direct contact with the wood. http://www.jeld-wen.com/catalog/windows/siteline-ex/wood/double-hung w.ross--the only companies I know of that leave this gap are Marvin & Sun. I think it was eitherLincoln or Best that also left the gap, but I can't recall for sure. I've attached below what my window research found as posted on another thread. You may find it useful : Researched windows for months--until I had made myself crazy. Started out Pella(alum clad), then Jeld-Wen (alum clad), investigated M&W (vinyl & alum clad), Sun (alum clad), Andersen (alum clad), & Windsor (alum clad). Ended up convinced Marvin or Marvin Integrity are the way to go. Here's what I found: -Pella's aluminum clad windows are roll form aluminum which can dent easily & some question on the durability of the finish. Roll form is applied directly to the wood frame of the window--the wood is basically wrapped in the aluminum cladding. Should water infiltrate the frame of the unit, the design leaves no space for water to escape or drain away from the wood which is why Pella promotes how their wood is specially treated. Plenty of good reviews, plenty of bad reviews. Price was sky high. -Jeld-Wen Traditions are roll form aluminum so denting is an issue. SiteLine EX series are extruded aluminum clad wood which takes care of the denting, but the cladding is applied using same technique as roll form so no channel for water to escape should water infiltrate. JW also promotes how their wood is specially treated for just this reason. Plenty of good reviews, plenty of bad reviews. -M&W just not that impressed, recently merged with Ply-Gem so not reassured on how business will progress in future as far as quality & warranty. Vinyl clad line has wood frame wrapped in vinyl with no space between so potential water issue and no mention of wood being treated to help protect against rot. Did like the look of their aluminum clad line though. Plenty of good reviews, plenty of bad reviews. -Sun-Couldn't find enough reviews and information, but liked the look & they had the water drainage channel design. -Andersen-Seemed like practically everyone we talked to prior to researching the windows said stay away from Andersen. When asked why, the response was virtually identical each time--product not durable. Andersen stands behind their warranty but do you really want to have to be dealing with Andersen for the next 20 years on fixing warranty issues. We did price the Andersen 400s and the price was sky high. No personal experience with the product, but their windows sure did look nice. Plenty of good reviews, plenty of bad reviews. -Windsor-liked them, but not enough distributors in our area and the one we were dealing with seemed to always leave significant quantities of windows or the more expensive windows (arches, etc) off our quote. We're guessing they did this to make the bottom line look more attractive. So no faith in the supplier. -Marvin-beautiful windows. Ultimates are extruded aluminum clad with the space left between the wood and the cladding for water to escape. Reviews were primarily positive with only a few negatives (and they tended to be on older windows). Customer service and warranty reviews were excellent as well. Ultimately, the Ultimates are out of our price range. However, the Marvin Integrity windows did fall in our price range & they are also very nice windows in my opinion. They are a fiberglass window 8 times stronger than vinyl with no fading or chalking of the finish. They are available as wood clad with channels for water to escape or as an all fiberglass unit. Good U-Values & SHGC Values. Plus you have Marvin backing up the warranty should anything happen. So that's where we're at--Marvin Integrity is the window for us. Hope this helps!

I think you *might have more issues than just the installer getting lazy and not bringing the drywall all the way to the floor level. A pro who works with drywall would NEVER leave drywall looking like that...ever. Cuts will be straight and clean. Drywall will go to the subfloor level (maybe 1/4" gap). The garbage you see behind the cabinets (in the gap you are showing) would have been vacuumed up...etc. If you have questionable situations like this so early on, you might want to sit down and explain what you EXPECT to see at the end of each day. What is the SCOPE of this work? And how many people are on site each day? How much is the TOTAL value of the job vs. the work you are requiring being done?

@ A Mat Did you read my post? LOL? The foundation is new, just installed. We are not moving or raising. No, I certainly do not want a run down shed next to my patio. As mentioned in my post,  the shed is being rebuilt with new siding, roof, and doors. Is it the best placement? Maybe not but that is what we're working with. Did you have advice on landscaping ideas to fill the gap?