The largest construction defect lawsuit in Nevada history has once again raised questions about environmental contaminants and the liabilities of homebuilders and commercial developers. It’s nothing new, nor is it exclusive to Nevada.
Last year, consumers bought more than 1 million new homes in the United States and, according to Consumer Reports, homebuyers are increasingly discovering that their homes have defects and environmental contaminants. In some cases, homeowners or builders must pay repair costs that amount to half the selling price of the home – much more if the homebuilder resists and is ultimately found liable, which is why the cost of a single-family home averages an additional $8,500 to cover insurance premiums.
Commercial developments are not exempt. Hilton Hotels Corporation discovered mold growth in Kalia Tower at its Hilton Hawaiian Village. WebMD found itself in litigation arising from the presence of mold in its commercial building.
There are scores of cases across the nation, and it makes some people wonder if residential or commercial development is really worth the risk. But most of them – perhaps all of them – could have avoided litigation.
You have to remember what your grandmother told you when it was raining: put on galoshes or you might catch a cold. Prevention – and arbitration, if necessary – costs significantly less than litigation for developers and produces expedient results for owners and tenants. Grandma was right.
Much like anything, the first step is more difficult. When looking for a company to help with contamination problems, you have to page past most mold-testing and removal companies that tout the danger of mold, and look instead at the very few preventive maintenance companies available. You’ll know the difference right away. They avoid using the term “mold” and focus instead on environmental contaminants. Their trucks do not sport photos of super-sized fungus spores. Their policy should be to stay out of litigation cases where the primary objective is not removal and repair, but pursuing big settlements.
You’ll want a company that specializes in prevention and avoids plaintiff-style work. A proactive company will generally screen new homes and properties for early warning signs such as staining, water damage, floods and susceptible building materials.
The company should make the necessary repairs and restoration well before the home or property is sold or leased and should re-inspect the home six months after the purchase. The company should also educate homeowners, office managers and tenants on how to care for their home and minimize the risk of future environmental hazards. In many cases, it is the homeowner or tenant who introduces a contaminant or is negligent in preventing moisture that will eventually stimulate mold growth (for example, a leaky faucet or poor do-it-yourself construction).
The real solution to reducing or eliminating mold or other environmental claims is by reducing the potential for such problems, and correcting the problem should it occur. It’s relatively simple for a developer to demonstrate that a third party inspected the home and it was mold-free over a six-month period and educate the owner or tenant on how to control containments and moisture.
Imagine the difference if homeowners or tenants are encouraged to report such problems and a neutral, discreet expert is dispatched to the home or property to determine the cause and fix the problem. In such cases, the builders look like heroes because they are proactive to the needs of their customers, and what could be a minor issue never grows into a mountain.
