If I take this figurethe garage
turns out $23.70 per sqft. 22 sf would be $520 (maybe a little more
because
the other bidder's quote is for the spec with sheetrock onlyon the
walls
adjoining living space, no insulation). Do you guys think this is the
right
amount to ask for compenstation?

That's the bare-bones minimum, assuming the legalese of the contract
allows any consideration.

At the maximum, you may be able to demand "specific performance" of
tearing down the wall and rebuilding to meet the contract.
It all depends on what the contract actually says.

Tim.