Is Toxic Mold Going to Get Me?
Over the last few years, the discovery of mold in buildings has generated a firestorm of insurance claims and law suits for everything from property damage to bodily injury. Different types of mold can affect different groups of people in different ways, making the creation of any standards very difficult if not impossible. The big news is that after extensive scientific studies, there is apparently no scientific basis for repeated claims that mold has toxic effects on the general population. However, it is critical that the lack of a definitive health link not create any form of apathy on the mold issue.

Help, I Can’t Get Mold Insurance
Increasingly mold is being excluded from insurance coverage, leaving contractors bare on liability issues involving mold. Coverage is available, but it is critical that contractors receive expert help when looking for coverage. With regard to mold and insurance, contractors should keep the following in mind:

• Make sure the policy specifically addresses mold as a covered loss.

• If you are reading the exclusion section of any insurance policy looking for the mold coverage, you have a problem.

• There are no “standard” environmental insurance policies there are in fact over 140 different policies.

• Find Expert Help

How Can I Keep Mold Out of My Projects?
None of the parties in the construction process, from the building owner, to the architect, to the contractor, can guarantee a mold free building. However, there are things that all parties can do to reduce the potential for mold formation in new buildings by working together in all phases of the construction process. In order to reduce the potential for mold issues in a completed building, decisions need to be made early in the conceptual and design phases. These decisions include materials to be used, HVAC systems, work site control, construction procedures and foundation damp proofing, as all of these items will effect the overall risk of mold in the completed building.

How Can the Owner Impact Mold Growth?
How an owner operates and maintains the building after it is handed over by the contractor is no less important than either the design or the construction of the building. If the HVAC system is not properly run, the ambient humidity in the building can move into a range that can encourage the growth of mold. Maintenance is also critical, in that all water spills and water intrusions must be cleaned up and wetted building materials should be dried as quickly as possible. Even landscaping can encourage a mold problem; plants are havens for numerous types of molds.

What About Risk Allocation?
Specific language in the contracts can assist in the determination of allocation of risk with regard to potential mold issues in construction. Contract language needs to be clear in acknowledging that the contractor’s obligation with respect to mold formation is to abide by those specifications. Where owners do not intend to include such specifications in the contract document, there should be and acknowledgement that the owner recognized and accepts the attendant circumstances and risks.

AGC Of America Mold Task Force Finalizing Report
The AGC of America is finalizing a draft report for review by its Executive Board in late January 2003. The report is a proposed model guideline for owners, contractors and design professionals on how to avoid mold infestation in structures and, in turn, avoid litigation. It is the intention of the task force to share the draft guidelines with outside interested parties and publish it in final form by the AGC-A national convention scheduled in March 2003.

AGC Of Greater Milwaukee Examining Legislative Remedies To Mold
The AGC-GM has open up communications with various other construction organizations in an attempt to analyze the mold issue and develop strategies that act to limit its impact on the industry and its members. The major interest is to define and limit exposure through such practices as “safe harbor provisions. Under this provision construction that meets code and best practices could theoretically shield a contractor from mold related liability. Another measure being closely examined is the “right to cure” notice, which allows a contractor to remedy the problem before involving the courts. As the new legislative session progresses through 2003 the AGC-GM initiate its proposals to limit mold liability.

AGC of Greater Milwaukee will keep you updated on a regular basis on this critical issue for our industry as events warrant. If you have any questions or if there are any ideas or information that you would like to share, please feel free to contact Gert Grohmann at 414-778-4100 or at ggrohmann@agc-gm.org.