how to knock off slab remainder?

The slab for my garage looks like it wasn't finished right. Take a look:
http://yfrog.com/58things1j http://yfrog.com/58things2j
You can see a lip that extends beyond the face of the slab. I'm about to cut off the rotten siding and replace it. But it's clear that one reason it rotted is because water would hit this lip and bounce back onto the siding.
What's the best way to remove this lip without damaging the face? You can see in the 2nd image that it looks like the face has been knocked away past where it should have been. I want to avoid doing that myself.
I was thinking a cold chisel and a sledge, but I've never done anything like this.
thx
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Add a treated wood lip at bottom just above slab and forget about it
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Can't you just go over it with flashing,capping or something else?
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ben wrote:

You could score it first with a saw. Even a standard circular saw would do it using a diamond masonry blade or multiple cheap masonry abrasive blades. It won't be fast. Then use the sledge
How high up does the concrete go? A better bet would be to leave more space between the ledge/ground and the siding. 6 inches would make a huge differemce. You could also coat the bottoms of the boards with a penetrating epoxy like "git-rot" to prevent moisture penetration, or at least a good preservative.
I suspect that cutting the bottoms with a bevel, so they drip from the outside edge would help keep them from holding and wicking water also.
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A sledge is way too big and tiring to use to hit a chisel, you need about a 2 pound club hammer for the job. Even that will not do a good job as the concrete looks old, hard and brittle, and could cause it to break in the wrong area. If you are determined to remove it, rent a chain saw with a masonry blade adapter. After you remove the siding you will have a little more room to use it to cut back the concrete or at least make a cut deep enough that you can snap off the excess cleanly.
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That's a lot of work for little benefit. Unless you find the concrete aesthetically objectionable, just deal with the problem when you do the residing.
First do your tearoff, verify that the sill plate is in good condition - if not replace with treated wood, caulk/seal sill to concrete, install aluminum kickout flashing on the studs, {option: install PVC water table trim over the kick out flashing}*, install pressure treated T-1-11.
R
* http://www.hammerzone.com/archives/exterior/trim/water_table/pvc.htm
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ben wrote:

Replace the siding with Hardi-board siding. Caulk the gap.
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Can you put on the new siding so that it overhangs the lip? Keep it high enuf to avoid contact with standing water, etc, the ground does not look to be sloped away from the slab very much. Builing up the walls should be a much easier and faster way then trying to cut the lip back.
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wrote:

My first thought was yours--a cold chisel and mallot. A saw/blade combination made specifically for concrete will work too, but this will produce a messy cloud of dust. Just remove what is absolutely necessary to improve drainage.
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