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Mold and Construction Management
Professional Liability Aspects of Mold
Mold is an abundant and old life form.
It can even be found in the newest of buildings being
constructed today. In the vast majority of situations,
mold does not present a problem; however, if water is
in prolonged contact with today’s construction
materials, mold will grow and it can grow very rapidly.
As the construction manager (CM), your role is to prevent
this contact.
Successful preventative measures include
value engineering, plan review, quality construction,
contracts, mold response plans, water ingress inspections,
and training. Your proactive approach to a water ingress
situation can save you time and money by avoiding a
costly mold remediation later in the project.
Value Engineering
Be aware of value engineering implications during the
conceptual design and pre-bid phases of a project. The
omission or inclusion of features, such as a foundation
drain or a complicated roof should also be evaluated.
Mold-resistant materials may be more expensive than
their conventional counterparts but may not require
additional installation or maintenance costs. Therefore,
during the economic life of the building, their use
may result in a lower overall cost.
Plan Review
During the bidding and plan review phases of a project,
look for inconsistency with plan details, such as vapor
barriers, waterproofing, and window flashing on one
wall and not another. Also be wary of unique or complex
features. Such inconsistencies or complexities should
be brought to the architect’s attention for clarification.
These requests-for-information (RFIs) should be formally
documented and retained in your project file.
Contract Language
Another risk reduction tool is to include a clear understanding
of the roles and responsibilities of each party in the
contract. Contract language can appropriately allocate
the risks of mold incidents to those who retain responsibility
and control. Renovation projects should include contract
language that addresses pre-existing mold conditions.
With new construction, the contractor responsible for
the leak or faulty installation can quickly remedy the
situation that resulted in the mold occurrence. As a
CM, never guarantee, written or verbally, that the building
is free of mold.
Mold Response Plan
By including a mold protocol as part of the project
documents, roles, responsibilities and actions are already
established when mold is discovered. A response plan
should include the remedial actions to be performed
by site personnel and an evaluation of proper safety
precautions. Communicating such a plan to project personnel
is critical. Once site workers identify a situation
conducive to mold growth, they are aware of who to contact
and understand it is their responsibility to communicate
their findings. These actions result in a quickly formulated
response. Additionally, documentation of the training
of site personnel should be retained.
Inspections And Quality
As a CM, you are responsible for conducting safety,
quality and job progress inspections. Water ingress
and mold growth can easily be included in this routine.
By implementing such inspections, you will uncover improper
construction and water accumulation before it becomes
a problem. Areas to concentrate inspections for water
and mold include: mechanical chases; HVAC drip pans;
wall cavities; pipe insulation; un-vented closets; crawl
spaces; areas with limited ventilation; and areas with
potential for water accumulation.
Once the building is complete, a walk-through with the
owner is conducted. As part of the turnover process,
documentation should indicate there is no visible mold
or standing water in the building and the owner now
assumes responsibility for building maintenance. Digital
cameras make photo-documentation of the building’s
condition relatively simple.
Training
Provide and videotape training on the proper operation
and maintenance of the building systems (HVAC, mechanical,
plumbing, and building envelope) for the owner. A copy
of the video should be provided to the owner for use
when training future employees and a copy retained for
your files. This, along with the retained RFIs, inspection
forms, and training documents will provide valuable
legal defensibility in the event of a future mold or
water intrusion claim.
For more resources on mold management, visit our website
at www.xlenvironmental.com.
"XL Insurance" is a registered trademark of XL Group plc. XL
Insurance is the global brand used by member insurers of the
XL Group companies. Coverages underwritten
by Greenwich Insurance Company, Indian Harbor Insurance
Company, XL Insurance America, Inc., XL Specialty Insurance
Company and XL Insurance Company Limited—Canadian
Branch. Coverages not available in all jurisdictions. The
information contained herein is intended for informational
purposes only. Insurance coverage in any particular case will
depend upon the type of policy in effect, the terms, conditions
and exclusions in any such policy, and the facts of each
unique situation. No representation is made that any specific
insurance coverage would apply in the circumstances outlined
herein. Please refer to the individual policy forms for specific
coverage details.
© 2009, X.L. America, Inc. All rights reserved. This article may not be reproduced without the express permission of X.L.America, Inc.
505 Eagleview Boulevard, Suite 100 PO Box 636 Exton, PA 19341-0636 Phone: +1 800-327-1414
Fax: +1 610-458-7285
www.xlinsurance.com/environmental
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