The Ongoing Challenge of Mitigation

Cladosporium, penicillium, aspergillus—whatever you call it, it’s mold. And if you see it, you know it represents a lawsuit waiting to happen.

Mold is everywhere—indoors and out. There are over 100,000 species of mold and at least 1,000 are common in the U.S. While AEC professionals see mold issues roll in like looming thunder clouds, there is a silver lining—and that is unity. Virtually every professional services advocacy group and association agrees on the issues and impacts surrounding mold litigation and insurance concerns. Many provide resources and assistance to help their members survive this storm. And building owners, design firms and construction companies are working together in proactive and unified ways to address mold problems and circumvent the potential for its stealthy intrusion into building structures.

Photo courtesy of Halliwell Engineering Associates.

Litigation costs, insurance hikes and abatement measures are the money and time-consuming reasons why mold is an industry concern. “Small amounts of mold can bring hysteria that makes small problems great,” says Steven Charney, a partner with legal firm Peckar & Abramson. “Building owners go through exhaustive abatements to ally any perception that mold is or ever was a problem.”

In addition, insurance issues compound the challenge for AEC firms. While most insurance companies have now excluded mold from their policies, residual liability insurance protection is available to historic projects, since the policy that was in place when the loss occurred is typically the policy that applies to the loss.

In the wake of the current insurance cost tidal wave, companies have options—though costly and restrictive. For example, some environmental impairment liability (EIL) insurance carriers offer limited mold coverage for a fee. And Contractors Pollution Liability (CPL) policies will sometimes offer mold-related protection; but insurance firms are likely to scour a company’s performance history and require internal mold training and awareness programming—and again, the price is not cheap.

Photo courtesy of EPA.

Premiums are not the only concern, however. Higher deductibles are becoming an industry norm, and sub-limits provide increased restriction on what will and will not be covered.

So what do we do? It’s back to unity. As an industry, combining political clout, sharing information, risk management strategies and developing standards for mold-related issues can be a deterrent to further waves of liability vulnerability. Nolan Day, national promotion director for W.R. Meadows underscores the need for team unity: “When owners, designers, construction teams, and manufacturers communicate effectively and work together, they can circumvent vapor and water penetration issues. We need to realize that, while asbestos abatement has pretty much run its course, mold is here to stay. Michael Kennedy, general counsel of the Associated General Contractors of America, adds, “Mold cases cast a very broad net. If mold infests a new or renovated building, all of the parties in the construction process are going to lose.”

Fried

Time is of the essence when water infiltrates a building. Every hour is crucial, potentially impacting the extent of mold formation, property damage and business interruption. “If you don’t react quickly, mold will come and grow,” says Burton T. Fried, president of nationwide LVI Services Inc.

Fried recommends that facility managers develop a relationship with a remediation contractor now. If a water problem does arise, the team can begin work immediately. In selecting a firm, he offers the following advice:

Be sure the remediation firm is licensed in all forms of clean up. Delays can result if water infiltrates materials that the firm is not licensed to remediate, such as asbestos, lead-based paint, and other hazardous materials.

Make sure the firm has a trained and licensed remediation staff available in all your geographies. Waiting for a team to travel long distances can turn a water problem into a major crisis.

Be sure the firm can be contacted about your potential crisis immediately. They must be ready to respond at any hour, of any day, for any length of time with sufficient staffing and equipment.

Select a remediation contractor that has mold insurance coverage. It’s available to all qualified contractors.

WHY IS IT SO HARD TO GET IT RIGHT?

By Jack Halliwell, P.E.

The short answer is … that everyone has to get it right: the owner, the architect, the engineer, the contractor, and the operator.

Our engineering investigations into thousands of building systems has revealed some common-denominator causes for moisture failures in large buildings. The manifestation of the problem is primarily caused by:

1) Gaps in the technical knowledge of designers, contractors and operators, and

2) Disconnects in the responsibilities of designers, contractors and operators.

At a recent meeting of the National Institute of Building Sciences, Lew Harriman of the U.S. Department of Energy noted, “Mold growth in buildings illustrates the disconnect between the technical wisdom of building science and the economic wisdom of the market for building construction and operation.”

Knowledge gaps result from confusion, misinformation and conflicting directives between published guidelines and standards, as well as from widely accepted design, construction and operational practices. Problems arise when standards and practices don’t work in every building, system or climate. Knowledge gaps exist because the current systems of peer review, information, delivery and implementation are inefficient.

To solve mold problems we must ensure that people who make critical daily decisions get the information they need, at the time they need it, in an actionable form. The answers lie in providing the right expertise and helping key people make key decisions at key times in the project process.

This is simple, but not always easy. The insurance industry, by excluding mold coverage to building owners, has been successful in shifting the financial burden of mold claims back to the designers, contractors and building operators. The most cost-effective and efficient means of preventing problems, protecting projects and clients and “getting it right” is through carefully prepared moisture and mold risk management programs. p

Jack L. Halliwell, P.E. is president of Halliwell Engineering Associates, Inc. He has served on ASHRAE’s Standard 62 Committee: Ventilation for Acceptable Indoor Air Quality and has helped develop national IAQ programs for Fortune 500 companies, commercial real estate and multi-family residential portfolios.

What if we could proactively eliminate the mold “blame game”? What if we could circumvent mold litigation before problems arise? That is exactly what Peckar & Abramson (P&A) is doing today. This international law firm that specializes in legal services to the construction industry is helping clients wipe out the potential for mold claims and the enormous liability they impose.

P&A partner, Steven Charney vice-chaired the task force that published the Associated General Contractors (AGC) new guide, Managing the Risk of Mold in the Construction of Buildings. “There was a crying need—a void,” says Charney. “There were no industry guidelines for addressing mold. This guide provides intelligent, rational principles for addressing mold risks,” he says. “It describes how all participants should be considering and discussing mold and helps them understand how decisions at all stages of planning and construction can impact the potential for a mold issue.”

Charney cites the common example of an early completion date. Often, that requires that work on a building’s interior proceed before the building is fully enclosed. “This is a logical business decision,” he said, “but it creates an elevated risk of mold formation and, in a case like this, all parties need to recognize the ramifications of the decision, since abatement may be necessary later on.”

Charney

P&A partners believe they were years ahead of the industry in grasping the potential magnitude of the problem that mold has become today. “We developed an internal mold task force years ago,” states Charney. The task force designed procedures to deal with insurance concerns as well as mold formation and abatement issues. It developed preventive programs that address construction, materials, consultants, and design which has brought industrial hygienists and other experts into the process. They also create early warning/recognition programs to help clients avoid lawsuits. “It is a narrow view to think of everything in terms of litigation,” Charney states. “By educating firms in ways to avoid mold-related litigation, including alternative dispute resolution techniques, we are dealing with problems in their infancy and precluding avoidable litigation.”

“Peckar & Abramson understands the issues and the law and ties them together to bring the best solution to the table,” says Mark Boyle, the vice president and general manager of Turner Casualty & Surety. “They have depth in the industry, know the players and understand client sensitivities. Their solutions are good for us and take the owners’ needs into account.”

It is no secret that there has been an increasing groundswell of concern regarding the presence of mold and mildew in residential and commercial buildings. Mold spores waft through the indoor and outdoor air continually. Wherever dust can accumulate on a surface, there will be sufficient food for mold growth. When mold spores land on a damp surface, they may begin digesting whatever they are resting on in order to survive. Mold only occurs when moisture is present. Sources can include wet building materials, leaks in the building envelope or plumbing system, HVAC condensation or flooding. Many of these problems, however, can occur during construction, when materials are installed improperly or without regard to moisture considerations. All building materials, both organic and inorganic in composition, can become breeding grounds for mold.

Addressing the Problems

“The problem of mold can only be solved through a comprehensive review of job site management, construction practices and material designs,” says Fareed Khan, vice president of marketing for U.S. Gypsum Company. “To this end, architects, designers, contractors and maintenance engineers must work closely together to prevent mold growth—not only during construction, but throughout a building’s life cycle as well. Controlling mold requires careful design, proper construction, and thorough inspections and maintenance, all of which aim to manage one key factor: moisture.” U.S. Gypsum has created a section on the its Web site (www.usg.com) devoted specifically to the subject of moisture and mold. This information is also available by calling (800) USG-4YOU.

Creating Solutions

Aside from simply understanding the mold and moisture problem, attempts are being made to provide better solutions through the creation and development of improved testing methods and standards. A variety of associations and industry groups are actively addressing this problem, as are governmental agencies.

The need to develop and introduce new products that resist the effects of moisture and mold has also been recognized by leading manufacturers. However, moisture is not simply a product issue, but a building systems issue. As such, moisture control could be viewed in the same way issues such as fire resistance, sound control, abuse resistance and aesthetics are addressed. Products alone will not necessarily mitigate any major problem.

Mold and moisture-related facility projects are often complex and multi-faceted. This was underscored recently when PSI, a consulting engineering firm headquartered in Oakbrook Terrace, IL, provided industrial hygiene services for a school renovation in the Pacific Northwest. The building had been vacant for two years.

Initially, another consultant performed a moisture and mold survey that revealed substantial problems resulting from a dilapidated roof system. PSI was then brought in to perform additional mold consulting and asbestos consulting services. PSI prepared project specifications with a detailed scope of work, performed monitoring during the remedial activities, and performed post-remedial sampling for mold and asbestos remediation. The work included removal of lathe and plaster, ceiling tiles, thermal systems insulation, carpeting, and floor tiles and mastic. In addition, wood beams were treated with an anti-microbial encapsulant to kill mold spores and seal the wood to prevent future mold growth.

“This project is an example of how PSI's One Company, One Call services could have made the project more efficient,” says Thomas Hruby, Jr., P.E., corporate vice president with PSI. “By having one consultant involved from survey through design and remediation, I believe the process would have been easier, more consistent and less costly for the owner.”

Poppe

The Associated General Contractors of America (AGC) encourages all parties to the construction process to work cooperatively and proactively to prevent mold problems before they arise. In a booklet that AGC published last March, the association provides the following guidelines:

During development and design phases of a project, the owner, construction contractor and design professional should systematically sort through all issues that mold raises for that particular project.

The design professional should ensure that plans for the building envelope, the HVAC system and for other mechanical systems all take the risk of mold into account and should pay attention to the design details that have the potential to cause or prevent a mold problem.

Together, the design professional and building owner should carefully select building materials and systems.

The construction contractor should monitor the way that materials are handled and stored on-site and should ensure that employees and subcontractors construct buildings in strict accordance with the plans, specifications and other contract documents.

The owner should develop a written plan for the proper operation and maintenance of the building upon its completion.

Buena Vista University in Storm Lake, IA, is taking a proactive approach to mold prevention. This was recently underscored by the care exhibited in constructing their new science center. One of their mold-inhibiting decisions was to apply Air-Shield™ LM to the building envelope to create an air and vapor barrier. Air-Shield LM was developed by W.R. Meadows of Hampshire, IL. The sprayable liquid is a water-based, polymer-modified air barrier that cures to form a seamless, elastomeric membrane to shield porous building materials from air and moisture penetration. It seals both rough and smooth surfaces.

“Buena Vista University chose Air-Shield LM for various reasons,” says Brent Weber, eastern regional sales manager for W.R. Meadows. “Its low permeability greatly reduces moisture migration, it helps bridge cracks that may form in the substrate, and the water-based technology allows for simple, safe application and easy clean up.”