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Mold Issues


Mold - An Overview
Safety Day 2003 Presentation: Avoiding Mold in Construction
Mold Update 1 - August 13, 2002
Mold Update 2 - December 17, 2002
Mold Update 3 - April 23, 2003

Mold cleared in link to serious illness, but respiratory problems an issue
The good news on mold is that there is no evidence linking it to cancer, extreme fatigue or neurological problems, but the bad news is that it can indeed cause enough coughing and wheezing to warrant action at local, state and national levels, a National Academy of Sciences report says. The report says even though it doesn't appear to be linked to the more serious illnesses, mold, or excessive indoor dampness, is a "widespread" problem and the findings should prompt changes in how buildings are designed, constructed and maintained.   The New York Times (free registration) (5/26),   MSNBC (5/25),   The Wall Street Journal (subscription required) (5/26)
 

AGC of America Guidance on Mold

Mold has become a great and growing problem for the construction industry. Over the last two years, the number of claims and lawsuits have skyrocketed. And in response, the insurance industry has withdrawn most of the coverage that it once provided.

To help construction contractors avoid the mold claims and litigation, and to improve their prospects for future insurance coverage, AGC has published a thirty-five-page booklet on the subject. AGC has also published a number of articles in CONSTRUCTOR magazine and sponsored several presentations. Below are links to these materials.
 

 

Publications
Managing the Risk of Mold in the Construction of Buildings
Click title to download publication.

This booklet identifies the many issues that not only construction contractors but also building owners and their design professionals need to consider. Parts I and II summarize the science of mold, its health effects and why it grows in buildings. Part III deals with building design, materials and systems, and how they all bear on the risk that mold will become a problem. Part IV outlines the risks that would be reasonable to expect during the "exposed", the "partially enclosed" and the "controlled" phases of the building construction process. Part V identifies special measures that owners may want to include in their plans, specifications and other contract documents. And Part VI covers building operation and maintenance. Written by the members of AGC's Mold Litigation Task Force. Released in March of 2003.

 

Sample Checklists

St. Paul's Mold in Construction Checklist

St. Paul Fire & Marine Insurance Company has generously agreed to permit AGC to share the company's "Mold in Construction Checklist" with all AGC members. The checklist is in three parts, beginning with "pre-job tasks," continuing with "during construction checks" and concluding with "post-construction checks." Four pages in length. AGC members only.

Schinnerer's Mold Checklist

Victor O. Schinnerer & Company has similarly granted AGC permission to republish the "Mold Checklist" that appeared in its newsletter, Constructive Comments, in 2003. The checklist is in four parts, entitled Storing the Materials, Managing the Work, Closing Out the Project and Creating a Contingency Response Team. One page. AGC members only.

CONSTRUCTOR Articles

Do Pollution and Mold Threaten Your Financial Future?
This article explores several of the insurance issues that mold raises. The article explains the pollution and mold exclusions from most commercial general liability (CGL) policies. It adds that contractor pollution liability (CPL) policies may be the best source of future coverage for mold. Written by James Trader at AON Risk Services. Published in February of 2003.

Contractual Risk Allocations for Mold Conditions
This article provides and discusses contractual language that may help contractors fairly allocate the risk of a mold problem with a particular building. It addresses any mold found in an existing structure and any other mold not due to the negligence of the contractor. Written by John W. Dreste, Esq., Kevin F. Peartree, Esq. and Martha L. Perkins, Esq, at Ernstrom & Dreste, LLP. Published in February of 2003.

 

Presentations

Is Your "Mold" Claim Covered?
This presentation explores the several issues that can arise if and when a contractor seeks insurance coverage for work completed in the past - before the insurance industry began to put specific and express "mold" exclusions into general commercial liability (CGL) and other insurance policies. Presented by James Trader at AON Risk Services. Presented at AGC's 84th Annual Convention in March of 2003.

Environmental Insurance Solutions for Mold
This presentation outlines and describes the mold insurance coverage that is likely to be available for future work, including the steps necessary to secure such coverage. Presented by Jeff Slivka at Arthur J. Gallagher & Co. Presented at AGC's 84th Annual Convention in March of 2003.

Pending State Legislation Addressing the Growing Issues Surrounding Mold
This presentation covers the mold and related legislation that several states are considering, including the legislation that one state has already passed. As the presentation reveals, some of the bills would require studies, that others would require licensing and that still others deal directly with construction defects. Presented by Mary Jean Pethick, Esq., at the American Insurance Association. Presented at AGC's 84th Annual Convention in March of 2003.

Managing the Risk of Mold
This presentation outlines and explains the federal government's interest in the subject of mold, including the prospects for Congressional action, what federal agencies are doing, and where AGC is positioned. Presented by Kelly Krauser at AGC of America. Presented at AGC's 84th Annual Convention in March of 2003.

 
 

 

 

 

Mold Taskforce Members
Kevin O'Toole, Hunzinger Construction
Rick Andritsch, VJS Construction Services
Tim Just, C.G. Schmidt
Joe Shortread, Stier Construction Inc.
Don Miller, Diversified Insurance Services
Larry Michael, Brehmer Agency
Tom Boelkow, Building Service Inc.
Rich Murphy, Olympic Wall System, Inc.
Tony Prosper, Security Insurance Services
Bob Anderson, Bob Anderson Builders, Inc.
Joseph Schmit, J.H. Findorff & Son, Inc.
Burt Babcock, Babcock Mechanical Co.
Dave Schultz, Kelmann Corporation
Rich Johnston, Giles Engineering Associates
Cindy Smith, Michael Best and Friedrich
John Periard, BOMA