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(STRUCTURAL BUILDING COMPONENTS MAGAZINE)Tj
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( )Tj
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(June/July 2004)Tj
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(Dealing with Mold: Component Manufacturers Address Customer Concerns )Tj
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(by Kent J. Pagel, WTCA Legal Counsel)Tj
12.5 0 0 12.5 304.9546 647.8354 Tm
( )Tj
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([See also: )Tj
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(Summary of Crucial Facts on Mold for the Structural Components Manufactu\
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(Jan/Feb 2003 "Our Legal Reality, "Whose Mold Is It?")Tj
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(] )Tj
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(Review four real world case examples experienced by component manufactur\
ers )Tj
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(where customers address mold on structural building components.)Tj
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-3.2 -2.717 Td
(Builder complaints regarding the growth of surface mold on the lumber co\
ntained within wood )Tj
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(structural components, while not as frequently encountered as in the pas\
t, continue to pose a )Tj
T*
(dilemma in some markets. The dilemma comes in the form of builders eithe\
r demanding mold-)Tj
T*
(free wood based products, or when mold appears on a component at the job\
site, they are )Tj
T*
(demanding that suppliers provide an immediate remediation \(e.g., remova\
l\) of the mold, )Tj
T*
(regardless of the cause or the cost. And, where structures are improperl\
y designed or )Tj
T*
(constructed and mold growth appears years later, component manufacturers\
\(CMs\) have found )Tj
T*
(themselves into construction defect litigation with various types of com\
plaints being asserted.)Tj
0 -2.72 TD
(Unfortunately, few answers exist that will guarantee a successful outcom\
e in most )Tj
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(circumstances. Reacting to a builder\222s request or complaint with spee\
d and diligence is certainly )Tj
T*
(important. However, no \223one size fits all\224 approach will work. Ano\
ther fact that has become )Tj
T*
(relevant to the discussion: Mold exclusions are now being written into m\
ost CM general liability )Tj
T*
(insurance policies.)Tj
0 -2.72 TD
(To follow are four real world case studies in which mold on lumber conta\
ined within structural )Tj
0 -1.2 TD
(components had to be dealt with by a CM. The analysis that follows each \
example will hopefully )Tj
T*
(provide some guidance for the reader in how to deal with the example cit\
ed or a similar )Tj
T*
(situation.)Tj
/TT0 1 Tf
0 -2.721 TD
(CASE EXAMPLE 1)Tj
/TT1 1 Tf
0 -2.719 TD
(Trusses are free of any visible mold at the time the CM pulls up to the \
jobsite on the day the )Tj
0 -1.2 TD
(customer asked that they be delivered. However, the customer refuses del\
ivery and the trusses )Tj
T*
(end up sitting in the CM\222s yard for two weeks, a period where there i\
s a great deal of rainfall. )Tj
T*
(Since a moisture content above 19 percent for approximately one week is \
all that is required to )Tj
T*
(support mold growth \(see WTCA\222s Truss Technology in Building documen\
t, Facts Regarding Mold )Tj
T*
(on Wood Structural Building Components\), surface mold appears on the tr\
usses. The customer )Tj
T*
(ultimately refuses delivery of the trusses heeding the recommendation of\
a group counseling the )Tj
T*
(local homebuilders\222 association that any trusses, lumber or I-joists \
that visually indicate the )Tj
T*
(presence of mold or that have been subjected to moisture through rain or\
other means prior to )Tj
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(delivery shall be rejected and returned.)Tj
/TT1 1 Tf
0 -2.721 TD
(DISCUSSION.)Tj
/TT0 1 Tf
( From a legal perspective, our CM most likely has an enforceable claim a\
gainst his )Tj
0 -1.2 TD
(customer as he fully performed and never agreed to store the trusses in \
such a way so as to )Tj
T*
(prevent moisture accumulation. Our CM\222s claim would be a \223lay-down\
\224 if the following language )Tj
T*
(was included in his written customer contract: Any mold growth on produc\
ts manufactured by )Tj
T*
([Truss Manufacturer] that meet the Purchaser\222s delivery schedule, but\
where deliveries were not )Tj
T*
(timely accepted by Purchaser and if remediation is required, shall be at\
a cost borne by )Tj
T*
(Purchaser.)Tj
0 -2.72 TD
(Of course, suing is not the preferred alternative. Instead, the CM may c\
hoose, at least this one )Tj
0 -1.2 TD
(time, to clean and remove any visible sign of mold. While some may sugge\
st that a bleach )Tj
T*
(solution be used, WTCA follows the recommendations of others to scrub wi\
th detergent and )Tj
T*
(water, rinse and allow for drying. While undertaking to clean is most li\
kely less expensive than )Tj
T*
(for the builder to hire a contractor and back-charge the CM, remember on\
e caveat. To the )Tj
T*
(extent CM employees are working at the jobsite to remediate the mold, th\
e role of the CM has )Tj
T*
(now shifted from that of a supplier to subcontractor.)Tj
0 -2.72 TD
(A document the CM may find useful in these circumstances is WTCA\222s TT\
B document, Builder )Tj
0 -1.2 TD
(Advisory\227Checklist for Minimizing Mold on Structural Building Compone\
nts. This guide recognizes )Tj
T*
(that the wetting of framing lumber is inevitable. The advisory states th\
at framing will dry out )Tj
T*
(after the structure is put under roof, sheathed and sided AND that such \
drying must occur before )Tj
T*
(the framing is closed in or covered up with insulation and drywall. As t\
he framing dries, without )Tj
T*
(moisture the mold can no longer grow. Another way of explaining this app\
roach\227the most )Tj
T*
(efficient approach in dealing with mold on lumber given the chain of dis\
tribution of lumber )Tj
T*
(through the point a truss is manufactured and delivered to a jobsite\227\
is for the builder to allow )Tj
T*
(for framing lumber to adequately dry once properly installed and protect\
ed from the elements )Tj
T*
(and to then remediate any mold at the jobsite with detergent and water.)Tj
0 -2.72 TD
(Note that mold is not directly addressed in BCSI or in the B1 through B1\
0 pamphlets which may )Tj
0 -1.2 TD
(be included in the CM\222s jobsite package. The only indirect reference \
to mold is found in B1 )Tj
T*
(where it states: \(a\) if trusses are stored horizontally for more than \
one week, blocking should be )Tj
T*
(used to lessen moisture gain from the ground, \(b\) during long term sto\
rage, trusses must be )Tj
T*
(protected from the environment in a manner that provides for adequate ve\
ntilation of the )Tj
T*
(trusses, and \(c\) if tarps or other protective covers are used \(with p\
lastic not being )Tj
T*
(recommended, as it can trap moisture\), proper ventilation must be provi\
ded.)Tj
/TT1 1 Tf
0 -2.721 TD
(CASE EXAMPLE 2)Tj
/TT0 1 Tf
0 -2.719 TD
(Project specifications contain any one of the following provisions:)Tj
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(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 111.95 Tm
(Lumber in trusses and wall panels shall have a moisture content of 19 pe\
rcent or less. )Tj
/T1_0 1 Tf
6.25 0 0 6.25 30.65 96.95 Tm
(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 96.95 Tm
(Lumber shall have no visible signs of mold and shall be free of any wate\
r damage. )Tj
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6.25 0 0 6.25 30.65 81.95 Tm
(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 81.95 Tm
([Truss manufacturer] shall monitor lumber shipments when received from t\
he mill and adhere )Tj
0 -1.2 TD
(to a policy of stock rotation; buy lumber that is wrapped or otherwise p\
rotected from the )Tj
T*
(moisture on deliveries; store lumber in closed or roofed area make visua\
l inspections and not )Tj
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(deliver with mold. Trusses and wall panels shall be manufactured no more\
than five days in )Tj
0 -1.2 TD
(advance of original scheduled delivery date.)Tj
/TT1 1 Tf
-1.2 -2.721 Td
(DISCUSSION.)Tj
/TT0 1 Tf
( If agreed to, the first two provisions essentially amount to a warranty\
from the CM )Tj
T*
(that when delivered, trusses will not have a high enough moisture conten\
t to allow for surface )Tj
T*
(mold growth. Thus, if surface mold appears on the trusses at time of del\
ivery, you can expect )Tj
T*
(any remediation cost will be borne by the CM. Further, if a provision li\
ke this is agreed to, how )Tj
T*
(does the truss manufacturer assure itself that all of the trusses have a\
moisture content of 19 )Tj
T*
(percent or less\227especially if they sit in the yard for a few days bef\
ore delivery? The third )Tj
T*
(provision is far more detailed and imposes a great deal of responsibilit\
y on the CM.)Tj
0 -2.72 TD
(While provisions like those listed above are likely to remain in specifi\
cations, in fact we may )Tj
0 -1.2 TD
(begin seeing more of these types of specifications to the extent builder\
s continue to become )Tj
T*
(entangled in mold litigation. If the CM cannot effectively eliminate suc\
h specification language, )Tj
T*
(he may have no choice but to address how to minimize the moisture conten\
t in the trusses and )Tj
T*
(related products it manufactures and delivers. Some suggestions include:\
)Tj
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6.25 0 0 6.25 30.65 487.95 Tm
(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 487.95 Tm
(Checking the moisture content on each load of lumber received and refusi\
ng lumber that is )Tj
T*
(wet or discolored. )Tj
/T1_0 1 Tf
6.25 0 0 6.25 30.65 457.95 Tm
(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 457.95 Tm
(Storing under cover or providing sufficient protection of any lumber tha\
t will be kept for any )Tj
T*
(prolonged period of time \(e.g., ten days to two weeks\). )Tj
/T1_0 1 Tf
6.25 0 0 6.25 30.65 427.95 Tm
(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 427.95 Tm
(Culling out boards during the manufacturing process, taking pictures of \
defective boards and )Tj
T*
(placing calls to your lumber supplier seeking redress. )Tj
/T1_0 1 Tf
6.25 0 0 6.25 30.65 397.95 Tm
(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 397.95 Tm
(Increasing the emphasis on just-in-time manufacturing, because the bigge\
st problem with )Tj
T*
(surface mold for truss manufacturers is the growth of mold after the tru\
sses are )Tj
T*
(manufactured. The trusses are banded \(which allows moisture to be trapp\
ed\), stored outside, )Tj
T*
(and customers will invariably delay deliveries. )Tj
/T1_0 1 Tf
6.25 0 0 6.25 30.65 337.95 Tm
(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 337.95 Tm
(If the CM must agree to some specification or warranty regarding mold, a\
void language like )Tj
T*
(\223mold-free\224 with no limit on duration and instead consider languag\
e such as no \223visible signs )Tj
T*
(of mold\224 for a limited period after delivery to the jobsite. Some CMs\
take pictures of the )Tj
T*
(trusses at time of delivery to verify that no visible signs of mold exis\
t \(an added benefit is to )Tj
T*
(verify, also through pictures, that the jobsite package was attached to \
the trusses at time of )Tj
T*
(delivery\). )Tj
/T1_0 1 Tf
6.25 0 0 6.25 30.65 247.95 Tm
(l)Tj
/TT0 1 Tf
( )Tj
12.5 0 0 12.5 45 247.95 Tm
(Continually emphasize with your customer that wetting of framing lumber \
is unavoidable )Tj
T*
(given the chain of distribution that lumber goes through. Lumber that is\
manufactured then )Tj
T*
(dried to less than 19 percent moisture content, can easily get wet durin\
g shipping and storage )Tj
T*
(along the way to the truss plant and then when stored at the truss plant\
. Assuming it remains )Tj
T*
(mold free at the time of truss manufacture, there is inevitable exposure\
to moisture when the )Tj
T*
(trusses are stored at the manufacturing plant, during the shipment to th\
e builder\222s jobsite, )Tj
T*
(storage at the jobsite, during installation and then depending on how qu\
ickly \223dry-in\224 takes )Tj
T*
(place even while properly installed. The most efficient and effective me\
ans to deal with mold )Tj
T*
(is for the builder to allow for framing lumber to adequately dry and to \
then remediate any )Tj
T*
(mold at the jobsite with detergent and water.)Tj
/TT1 1 Tf
-1.2 -2.721 Td
(CASE EXAMPLE 3)Tj
/TT0 1 Tf
0 -2.719 TD
(Visible signs of mold appear on trusses and/or wall panels stored at a j\
obsite. Not surprisingly, )Tj
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(the builder wants the mold removed at the CM\222s expense, but goes one \
step further asking that )Tj
0 -1.2 TD
(the following provision be agreed on: [Manufacturer] agrees that it shal\
l be fully responsible for )Tj
T*
(and shall indemnify and hold [Customer] harmless from any claims, losses\
, damages and )Tj
T*
(expenses arising out of or relating in any way to any mold growth or inf\
estation occurring [at the )Tj
T*
(Project] to the extent that such mold growth or infestation is caused or\
contributed to by any )Tj
T*
(negligent acts, errors or omissions, defective or improper construction \
or workmanship by )Tj
T*
([Manufacturer].)Tj
/TT1 1 Tf
0 -2.721 TD
(DISCUSSION.)Tj
/TT0 1 Tf
( Before I discuss the indemnification language, keep in mind that the co\
sts to )Tj
0 -1.2 TD
(remove mold in an occupied structure are far greater than remediation du\
ring the construction )Tj
T*
(stage. Costs may include moving and housing the occupants, getting to th\
e mold, testing )Tj
T*
(\(substrate and air\), remediating the mold, repair, and attorneys fees \
for the claimant\222s lawyer. )Tj
T*
(With respect to this indemnification provision, remember one thing: The \
object of contractual )Tj
T*
(indemnity is to shift risk from one contracting party to another. Even w\
ith the limiting language )Tj
T*
(\(\205to the extent that such mold growth or infestation is caused or co\
ntributed to by any )Tj
T*
(negligent acts, errors or omissions, defective or improper construction \
or workmanship by )Tj
T*
([Manufacturer]\205\) that is contained in this indemnity provision \(con\
trast that with a broad )Tj
T*
(indemnity provision\), if mold appears years later regardless of cause, \
your customer will demand )Tj
T*
(that you defend and resolve any claim. And, if you are required to defen\
d a lawsuit, if your )Tj
T*
(general liability policy contains a mold exclusion, your insurance compa\
ny will most likely insist )Tj
T*
(that you defend the claim on your own\227without their help and money. T\
he only solution is to )Tj
T*
(refuse to agree to such indemnification provisions or work really hard t\
o limit the indemnity as )Tj
T*
(much as possible.)Tj
/TT1 1 Tf
0 -2.721 TD
(CASE EXAMPLE 4)Tj
/TT0 1 Tf
0 -2.719 TD
(An improper roof design allows moisture penetration into the walls of th\
e house and mold grows. )Tj
0 -1.2 TD
(Since the CM agreed to review plans and advise of any problems and canno\
t prove that the )Tj
T*
(manufactured products were mold-free at time of delivery, the CM is name\
d as a defendant and )Tj
T*
(asked to pay costs of repair and the costs to remediate the mold growth.\
)Tj
/TT1 1 Tf
0 -2.721 TD
(DISCUSSION.)Tj
/TT0 1 Tf
( This case study emphasizes the importance of reviewing customer contrac\
t forms )Tj
0 -1.2 TD
(and project specifications. Further, having some means to verify that st\
ructural components )Tj
T*
(either had a moisture content of less than 19 percent at time of deliver\
y or had no visible signs )Tj
T*
(of mold can be very important in litigation filed years later. An altern\
ative is to specifically )Tj
T*
(disclaim any obligations with regard to mold with a provision in your cu\
stomer contract:)Tj
3.2 -2.72 Td
(Seller\222s warranty shall exclude and Buyer assumes all risks and liabi\
lities caused by )Tj
T*
(mold and stain on the materials supplied by Seller; OR )Tj
0 -1.1 TD
( )Tj
T*
(Seller disclaims any liability for the negative effects of the emergence\
of mold or )Tj
0 -1.2 TD
(stain, and disclaims any duty to undertake any action to inspect, mitiga\
te or )Tj
T*
(remove mold and stain from the materials supplied by Seller.)Tj
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(Kent Pagel is a Senior Shareholder with the Houston, Texas firm of Pagel\
, Davis & )Tj
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(Hill, a professional corporation. Mr. Pagel serves as outside national c\
ounsel for )Tj
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(the Wood Truss Council of America.)Tj
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(SBC HOME PAGE)Tj
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(Copyright \251 2004 by Truss Publications, Inc. All rights reserved. For\
permission to reprint materials from SBC Magazine, )Tj
T*
(call 608/310-6706 or email )Tj
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(editor@sbcmag.info)Tj
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(. )Tj
-12.351 -1.3 Td
( )Tj
0 -1.1 TD
(The mission of Structural Building Components Magazine \(SBC\) is to inc\
rease the knowledge of and to promote the )Tj
0 -1.2 TD
(common interests of those engaged in manufacturing and distributing of s\
tructural building components to ensure growth )Tj
T*
(and continuity, and to be the information conduit by staying abreast of \
leading-edge issues. SBC will take a leadership )Tj
T*
(role on behalf of the component industry in disseminating technical and \
marketplace information, and will maintain )Tj
T*
(advisory committees consisting of the most knowledgeable professionals i\
n the industry. The opinions expressed in SBC )Tj
T*
(are those of the authors and those quoted solely, and are not necessaril\
y the opinions of any of the affiliated associations )Tj
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(\(SBCC, WTCA, SCDA & STCA\).)Tj
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( )Tj
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STRUCTURAL BUILDING COMPONENTS MAGAZINE - JUNE/JULY 2004
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