During my drill and fill with cellulose wall insulation job my contractor discovered a major problem with my exterior siding. The PO's replaced the cedar shakes on one wall of the house with the smaller square shakes. Actually looks OK but since the older barn shakes are 36" and the new ones are shorter they cannot be "woven" together at corners. Thus, at the corners there is no protection/coverage of the framing; it's open to the elements.

I don't have any recourse with the PO's so I priced out replacing the shakes. New 36" redwood barn shakes are $700/100 sq ft. Anyone have this problem? How can I retain the look of shake siding but avoid a hugh expense.

The real problem is the unprotected corners where water can run into the framing. Any ideas out there?