Saturday, June 21, 2014
Communication and document control in Construction
My undergraduate degree is in communication arts. I am currently working on a master’s degree from the University of Florida in International Construction Management and for years I have joked that my thesis would be on communication in the construction industry. I figured it would be the shortest thesis in history.
However over the last ten years I have become convinced of the importance of good document control during the construction process as well as for efficient facilities management after the project is done. I have also observed that people mistake the use of web-based document control and project management programs for good communication and often neglect the soft skills of simply picking up a telephone and calling another party when there are problems on a project or when they are shipping out documents. These document control and project management programs are not a substitute for personal communication – they are simply tools.
And like all tools, if they are not properly used they will fail.
These programs fail for the following reasons:
• Some large firms have their own programs and prefer to use them.
• It takes a lot of time to learn to use one of these programs and most companies do not have the time or manpower to invest in them, especially if they have their own.
• Loading and downloading plans, especially large amounts at one time, is time consuming and people prefer email.
• Not everyone likes to read off screens and some still want hard copies.
• Large projects can have multiple people loading documents. If they do not follow the document naming protocol to a “t” the documents become unsearchable.
• People often neglect reading notifications due to information overload; this is especially true when there is no defined communication tree and documents are sent out to all parties regardless of relevance to their work needs.
• People get busy and have deadlines and sometimes forget to upload documents.
• The sites are typically owned by the contractor or design team instead of the building owner. If there are issues on the project or if the owner does not assume control of the site and continue payment after project completion he can lose control of his documents.
• Some of these programs are expensive; especially if you have to buy licenses for a large amount of team members.
I was recently asked what I thought was the solution to these kinds of issues.
One solution would be to use email, a large file transfer site or cloud storage along with a transmittal protocol and only send out notifications of transmittal for tracking purposes. Final documents would be loaded at the end of the project. However, since some of these document management programs have nice bells and whistles including request for information (RFI) notification and logs and Auto CAD viewing and markup capability that would be a shame.
Another potential solution would be to have the owner of the project responsible to load all documents using the same person. That person would be a trained document controller with good communication skills and who understands the construction process. He would also be responsible to make sure all parties are notified promptly when documents are posted and where to find them. However this could require a team of people for large projects with thousands of documents otherwise it would slow the entire project down.
With the advent of i Cloud storage and multi-national project teams using web-based technology, a solution is probably close at hand. Regardless of how good the program is, the key to its success will ultimately still remain with the project manager and his team and how well they communicate together.
Monday, March 15, 2010
Chinese drywall continues to remain a puzzle to those of us not personally impacted by it in our homes and properties. If you have not yet heard about Chinese drywall, it is drywall that contains high amounts of strontium and sulfur and that is off gassing corrosive gasses that impact the mechanical and electrical systems in a home or property.
A couple of important things to know about Chinese drywall is that not all drywall labeled made in China is off gassing, drywall offgassing corrosively has been found with American labels and corrosive drywall has now been found in commercial properties including shopping centers, office buildings and warehouses.
More and more reports of home and property owners starting to repair homes and businesses impacted by corrosive drywall are coming in. Some of these repairs are complete gut and remodels or a variation such as removing all drywall but leaving the electrical wiring in place. Others are chemical or gas treatments of some form.
If you are a home or property owner contemplating removal of corrosive drywall make sure you look at the Multi District Litigation Court’s Preservation of Evidence program. Even if you elect to leave the drywall in and go ahead and chemically treat the house, if you do not take steps to record what type of drywall you have in your home or property, then your future litigation or settlements could be endangered or dismissed due to “destruction” of evidence.
What else is happening in the world of Chinese drywall currently? Some of the latest articles and news include:
• Reports of remediation costs coming in from test homes in Virginia being monitored by the MDL Courts at considerably higher prices than contractors were expecting.
• Rumors of failing remediation on homes already done.
• Reports of sulfur eating bacteria in the drywall gaining credibility.
• Homeowners continuing to struggle to get state and federal attention.
• Lenders not responding to requests for forbearance.
• Bloggers having a field day with scare stories.
• Reports of commercial properties impacted by defective drywall.
• Manufacturers continuing to promote "solutions" without the public having a full understanding on what is causing the off gassing.
If you are interested in obtaining a copy of the summit meeting notes from the meeting at Indian River State College on January 29, 2010 follow this link. The Conference was called “Tainted” Chinese Drywall: Getting Help for Those In Need”. This conference was for professionals currently assisting or interested in assisting home and property managers who are dealing with corrosive drywall.
A couple of important things to know about Chinese drywall is that not all drywall labeled made in China is off gassing, drywall offgassing corrosively has been found with American labels and corrosive drywall has now been found in commercial properties including shopping centers, office buildings and warehouses.
More and more reports of home and property owners starting to repair homes and businesses impacted by corrosive drywall are coming in. Some of these repairs are complete gut and remodels or a variation such as removing all drywall but leaving the electrical wiring in place. Others are chemical or gas treatments of some form.
If you are a home or property owner contemplating removal of corrosive drywall make sure you look at the Multi District Litigation Court’s Preservation of Evidence program. Even if you elect to leave the drywall in and go ahead and chemically treat the house, if you do not take steps to record what type of drywall you have in your home or property, then your future litigation or settlements could be endangered or dismissed due to “destruction” of evidence.
What else is happening in the world of Chinese drywall currently? Some of the latest articles and news include:
• Reports of remediation costs coming in from test homes in Virginia being monitored by the MDL Courts at considerably higher prices than contractors were expecting.
• Rumors of failing remediation on homes already done.
• Reports of sulfur eating bacteria in the drywall gaining credibility.
• Homeowners continuing to struggle to get state and federal attention.
• Lenders not responding to requests for forbearance.
• Bloggers having a field day with scare stories.
• Reports of commercial properties impacted by defective drywall.
• Manufacturers continuing to promote "solutions" without the public having a full understanding on what is causing the off gassing.
If you are interested in obtaining a copy of the summit meeting notes from the meeting at Indian River State College on January 29, 2010 follow this link. The Conference was called “Tainted” Chinese Drywall: Getting Help for Those In Need”. This conference was for professionals currently assisting or interested in assisting home and property managers who are dealing with corrosive drywall.
Thursday, November 12, 2009
Last week I had the opportunity to attend the Chinese Drywall Technical Symposium in Tampa. Here is a recap on the Environ report on construction materials and remediation protocol.
Jamie Poole, PhD, CIH is with Environ International Corporation. They were one of the first research laboratories called in to test what has become known as “reactive, corrosive or tainted” sheetrock. Dr. Poole made some important points based on their findings. First off he stressed that corrosive sheetrock will continue offgassing for many years and that installation did not trigger a onetime release of stored up gasses. He stated that the scale or residue found on copper coils is sulfur based and not a case of oxidation of metals and that “simply removing the source of the gas is insufficient.” Dr. Poole stated that the scale or residue will continue to corrode metals it is sitting on, even when the source of the gasses is removed.
Bob DeMott, PhD, led the group through a presentation on chemical analysis. Mr. DeMott is a toxicologist with Environ. He discussed some of the chemicals found in the off gassing of tainted sheetrock such as carbonyl sulfide and carbon disulfide and differentiated for the audience the differences between metals affected corrosively versus typical oxidation.
An extremely significant part of his talk was based on Environs research on other building materials that might be impacted by off gassing. He stated that the off gassing would not impact non-porous materials such as tile. For porous materials such as wood, the off gasses will enter it but it will not be stored in a reservoir type condition and the gasses will leave it. They tested wooden home components including plywood, pressure treated lumber and furring strips in 54 houses that were in some stage of renovation, remodeling or repair and found that the potential damage was not significant due to off gassing. They also tested concrete by attaching chambers to the sides of block houses. This is huge news for those people who were speculating that the entire house, frame and shell, would need to come down if the gasses weakened the structure.
Many of the contractors present were hoping for guidelines or a program to start remediation and were disappointed. However, there was practical advice given, particularly by Environ based on some research work they had done and presented as a poster.
Jamie Poole presented key considerations for the repair of structures with defective drywall. He said that work should only be done in unoccupied structures, items that had potential re-use should be removed and stored elsewhere, tile be covered and protected but that all carpet and padding should be removed and thrown away since they are “dust magnets” and that ALL drywall be removed.
In terms of ancillary building components, he suggested that insulation, batting, interior duct work and air handlers and all regular and low voltage wiring be removed. While you can clean the internal air handling systems and duct work, it is labor intensive so he suggested it just be removed and replaced. He did state that the air conditioning compressor unit could stay. He said that typically all copper, brass and chrome plumbing components are being removed.
After demolition, then a cleaning and venting process should be followed. For cleaning he recommended a gross cleaning, a pre cleaning and then HEPA vacuuming using industrial quality equipment and fine filters to try to get as much particulate dust as possible. He then suggested ventilating the house before starting to rebuild. Later on an audience member asked how long a house should be ventilated and it was discussed that it should be from 2 weeks to a month. It was also discussed that the “airing” out period could be accelerated by heating and ozone but to be cautious using ozone around organics, fine fabric and other sensitive materials.
He did give a couple of heads up comments to homeowners and their contractors including making sure that all waste lines were properly capped during demolition and that homeowners should understand that some oxidation of copper is natural.
He said that current evidence does not support cross contamination of wood and concrete. He cited their own research (which should be posted under posters) using a 54 home study of wood components. He also said that cement based products such as durorock, gypcrete flooring and concrete block would not be impacted. They had found no detection of sulfur damage in concrete block based on 80 chamber tests that they did.
Poole stated that some oxidation on metal framing could be observed and should be ordinarily expected. They looked at truss plates, nails, metal framing and hurricane straps and did not see any reason for concern.
In closing, he stated that repairs to homes could be effective and successfully done and that exotic procedures were not warranted. Based on their objective evaluations of wood and concrete homeowners should be “ok” with those components left in place. He felt that adding other products to the mix “to make sure” could actually be more harmful than good because there might be a problem with those items down the road.
For a full copy of my notes go to www.Assetadvisorsandmanagers.com
Jamie Poole, PhD, CIH is with Environ International Corporation. They were one of the first research laboratories called in to test what has become known as “reactive, corrosive or tainted” sheetrock. Dr. Poole made some important points based on their findings. First off he stressed that corrosive sheetrock will continue offgassing for many years and that installation did not trigger a onetime release of stored up gasses. He stated that the scale or residue found on copper coils is sulfur based and not a case of oxidation of metals and that “simply removing the source of the gas is insufficient.” Dr. Poole stated that the scale or residue will continue to corrode metals it is sitting on, even when the source of the gasses is removed.
Bob DeMott, PhD, led the group through a presentation on chemical analysis. Mr. DeMott is a toxicologist with Environ. He discussed some of the chemicals found in the off gassing of tainted sheetrock such as carbonyl sulfide and carbon disulfide and differentiated for the audience the differences between metals affected corrosively versus typical oxidation.
An extremely significant part of his talk was based on Environs research on other building materials that might be impacted by off gassing. He stated that the off gassing would not impact non-porous materials such as tile. For porous materials such as wood, the off gasses will enter it but it will not be stored in a reservoir type condition and the gasses will leave it. They tested wooden home components including plywood, pressure treated lumber and furring strips in 54 houses that were in some stage of renovation, remodeling or repair and found that the potential damage was not significant due to off gassing. They also tested concrete by attaching chambers to the sides of block houses. This is huge news for those people who were speculating that the entire house, frame and shell, would need to come down if the gasses weakened the structure.
Many of the contractors present were hoping for guidelines or a program to start remediation and were disappointed. However, there was practical advice given, particularly by Environ based on some research work they had done and presented as a poster.
Jamie Poole presented key considerations for the repair of structures with defective drywall. He said that work should only be done in unoccupied structures, items that had potential re-use should be removed and stored elsewhere, tile be covered and protected but that all carpet and padding should be removed and thrown away since they are “dust magnets” and that ALL drywall be removed.
In terms of ancillary building components, he suggested that insulation, batting, interior duct work and air handlers and all regular and low voltage wiring be removed. While you can clean the internal air handling systems and duct work, it is labor intensive so he suggested it just be removed and replaced. He did state that the air conditioning compressor unit could stay. He said that typically all copper, brass and chrome plumbing components are being removed.
After demolition, then a cleaning and venting process should be followed. For cleaning he recommended a gross cleaning, a pre cleaning and then HEPA vacuuming using industrial quality equipment and fine filters to try to get as much particulate dust as possible. He then suggested ventilating the house before starting to rebuild. Later on an audience member asked how long a house should be ventilated and it was discussed that it should be from 2 weeks to a month. It was also discussed that the “airing” out period could be accelerated by heating and ozone but to be cautious using ozone around organics, fine fabric and other sensitive materials.
He did give a couple of heads up comments to homeowners and their contractors including making sure that all waste lines were properly capped during demolition and that homeowners should understand that some oxidation of copper is natural.
He said that current evidence does not support cross contamination of wood and concrete. He cited their own research (which should be posted under posters) using a 54 home study of wood components. He also said that cement based products such as durorock, gypcrete flooring and concrete block would not be impacted. They had found no detection of sulfur damage in concrete block based on 80 chamber tests that they did.
Poole stated that some oxidation on metal framing could be observed and should be ordinarily expected. They looked at truss plates, nails, metal framing and hurricane straps and did not see any reason for concern.
In closing, he stated that repairs to homes could be effective and successfully done and that exotic procedures were not warranted. Based on their objective evaluations of wood and concrete homeowners should be “ok” with those components left in place. He felt that adding other products to the mix “to make sure” could actually be more harmful than good because there might be a problem with those items down the road.
For a full copy of my notes go to www.Assetadvisorsandmanagers.com
Thursday, October 29, 2009
CPSC Press Conference October 29 Recap
I was able to listen in to the press conference call held by the CPSC and related agencies today. It was a long call with participants from the CPSC, CDC, HUD, EPA and Florida DOH. Below is a recap of the conversation.
The bottom line, they still are looking for what they call the “nexus” or the pointer or marker to what is causing the defective sheetrock to continue to off gas corrosively. They have now received the results from the 50 home sampling and are analyzing them and plan to release additional findings next month.
They wanted the American public to know that while they continue to find the search for what is causing the off gassing perplexing, they are optimistic. They will continue to look for the scientific causes, which they feel is imperative, in order to find a remediation program that is specifically directed to clean up the cause of the corrosive off gassing.
They have found higher levels of strontium and sulfide in tainted drywall. They are looking at elevated volatile sulfur compounds as part of their continuing research but at this time they still cannot find what is causing the medical effects. They have noticed in houses that do not have air conditioning running that there is a higher than normal level of formaldehyde present. However, they are also quick to point out that when the houses are conditioned, what is being found in the air in relation to formaldehyde is typical to what is found in new homes and within tolerances of what is considered tolerable. (The presence of formaldehyde and other VOC’s in newer homes is not surprising due to more synthetic materials being used and higher energy efficiency that allows for less air leakage or fresh air intake in new homes with more efficient exchanges.) They are sympathetic to homeowners reporting health concerns and are continuing efforts to look at the problem in relation to medical impacts from a short and a long term point of view (acute and chronic).
HUD’s spokesperson stated that he urges homeowners to look at HUD resources for foreclosure counseling to seek help and that some communities with HUD grants might choose to allocate additional resources to lower and middle income homeowners through existing block grants if they are available and the community has high incidence of impact. Again, they also need the scientific analysis to continue until they can make further recommendations.
The CPSC is continuing to follow the chain of custody for drywall and have located warehouses where potentially defective sheetrock is still stored and notifying the suppliers of their awareness. If it is distributed the warehouses are required to notify the CPSC. That does not mean that the suppliers are prohibited from selling it; there is no code or act that would currently stop that. They did state that no imports were received this year so what is in the warehouses is stockpiled from previous years.
They stated that as far as they are concerned, all options for remediation, funding, recall, etc are still on the table and that there are ongoing discussions with the White House and with Congress. They also gave us a heads up that unless the manufacturers choose to issue the recall, then the CPSC can do it but only if they can make a case to do so. Hence again, the importance of continuing their scientific work.
They are also looking at this as being a synergistic problem in the drywall or in homes. Perhaps there is more than one factor causing the off gassing such as interaction of a couple of different compounds. If that is the case, there is not a simple way to determine and isolate what is causing the corrosive off gassing and it will take more time. It is important they try to isolate what is causing the corrosive off gassing because the remediation will need to be pointed directly to cleaning that up. They are hopeful that once they find that, then perhaps the current process of tearing everything out at high expense might not be needed, but they need to continue their analysis to say that for sure.
They were asked if the Chinese were going to pay for this and their response was hedged and directed back to Ms. Tennenbaum’s recent discussions with the Chinese. They stated that the Chinese are assisting with the technical aspects.
They have spent over 3.5 million in research and assured the journalists on the call that they are dedicated to continuing all efforts to try and help homeowners, some of whom they even named by name, to try and find out what is happening and help.
They also stressed that it is imperative they hear from ALL homeowners and for homeowners to please call them as well as their local departments of health.
The results of the testing and the press conference is posted in .pdf format under “release of current study” at: www.drywallresource.com or at http://www.cpsc.gov/info/drywall/index.html
The number to call them to report tainted sheetrock is 800-638-2772
You can view the results of the testing to date at the above website. I am sure, based on who was on the call and the questions they were asking, we will have extensive reporting and analysis of this in the media also.
I know some of you are going to be disappointed they were not forthcoming on what is causing the corrosive off gassing and they knew you would be also. They asked the members of the press to make sure that homeowners are aware that they are really working on this full force. However, they want to be certain they nail what is causing the corrosive off gassing because so much hangs upon them getting it right.
The bottom line, they still are looking for what they call the “nexus” or the pointer or marker to what is causing the defective sheetrock to continue to off gas corrosively. They have now received the results from the 50 home sampling and are analyzing them and plan to release additional findings next month.
They wanted the American public to know that while they continue to find the search for what is causing the off gassing perplexing, they are optimistic. They will continue to look for the scientific causes, which they feel is imperative, in order to find a remediation program that is specifically directed to clean up the cause of the corrosive off gassing.
They have found higher levels of strontium and sulfide in tainted drywall. They are looking at elevated volatile sulfur compounds as part of their continuing research but at this time they still cannot find what is causing the medical effects. They have noticed in houses that do not have air conditioning running that there is a higher than normal level of formaldehyde present. However, they are also quick to point out that when the houses are conditioned, what is being found in the air in relation to formaldehyde is typical to what is found in new homes and within tolerances of what is considered tolerable. (The presence of formaldehyde and other VOC’s in newer homes is not surprising due to more synthetic materials being used and higher energy efficiency that allows for less air leakage or fresh air intake in new homes with more efficient exchanges.) They are sympathetic to homeowners reporting health concerns and are continuing efforts to look at the problem in relation to medical impacts from a short and a long term point of view (acute and chronic).
HUD’s spokesperson stated that he urges homeowners to look at HUD resources for foreclosure counseling to seek help and that some communities with HUD grants might choose to allocate additional resources to lower and middle income homeowners through existing block grants if they are available and the community has high incidence of impact. Again, they also need the scientific analysis to continue until they can make further recommendations.
The CPSC is continuing to follow the chain of custody for drywall and have located warehouses where potentially defective sheetrock is still stored and notifying the suppliers of their awareness. If it is distributed the warehouses are required to notify the CPSC. That does not mean that the suppliers are prohibited from selling it; there is no code or act that would currently stop that. They did state that no imports were received this year so what is in the warehouses is stockpiled from previous years.
They stated that as far as they are concerned, all options for remediation, funding, recall, etc are still on the table and that there are ongoing discussions with the White House and with Congress. They also gave us a heads up that unless the manufacturers choose to issue the recall, then the CPSC can do it but only if they can make a case to do so. Hence again, the importance of continuing their scientific work.
They are also looking at this as being a synergistic problem in the drywall or in homes. Perhaps there is more than one factor causing the off gassing such as interaction of a couple of different compounds. If that is the case, there is not a simple way to determine and isolate what is causing the corrosive off gassing and it will take more time. It is important they try to isolate what is causing the corrosive off gassing because the remediation will need to be pointed directly to cleaning that up. They are hopeful that once they find that, then perhaps the current process of tearing everything out at high expense might not be needed, but they need to continue their analysis to say that for sure.
They were asked if the Chinese were going to pay for this and their response was hedged and directed back to Ms. Tennenbaum’s recent discussions with the Chinese. They stated that the Chinese are assisting with the technical aspects.
They have spent over 3.5 million in research and assured the journalists on the call that they are dedicated to continuing all efforts to try and help homeowners, some of whom they even named by name, to try and find out what is happening and help.
They also stressed that it is imperative they hear from ALL homeowners and for homeowners to please call them as well as their local departments of health.
The results of the testing and the press conference is posted in .pdf format under “release of current study” at: www.drywallresource.com or at http://www.cpsc.gov/info/drywall/index.html
The number to call them to report tainted sheetrock is 800-638-2772
You can view the results of the testing to date at the above website. I am sure, based on who was on the call and the questions they were asking, we will have extensive reporting and analysis of this in the media also.
I know some of you are going to be disappointed they were not forthcoming on what is causing the corrosive off gassing and they knew you would be also. They asked the members of the press to make sure that homeowners are aware that they are really working on this full force. However, they want to be certain they nail what is causing the corrosive off gassing because so much hangs upon them getting it right.
Wednesday, October 21, 2009
Mortgage Forbearance help for people with Chinese Drywall or tainted Drywall
Howard Ehrsam sent out a newsletter today on how he got a mortgage forbearance. This info might be of help to some of you or people you know who are trying to get help from their lenders. It looks like the key is getting through to the right people with the right documentation. I think we all knew this but he talks about how he did it and what paperwork he used.
If you are interested in seeing what he has to say, email him at Howard@chinesedrywallscreening.com
County Appraisers usually have cut off dates for negotiating reductions in taxable values for the year. If your County has passed that date and you did not already ask for a reduction based on the presence of tainted drywall, ask them if they will provide a letter for you to use to talk to your lender. They might be willing to do that. The letter could state that they have been adjusting value for homes similar to yours or in your neighborhood with tainted sheetrock and what the typical percentage of drop of value is. They might ask that you provide documentation to them first though proving you have it. You will also need that for the lender.
Also, take note on what Howard says about the impact of this on his credit record. This has been another common concern I have heard expressed on why people do not ask for help from their lender. What he says is good news for people who are concerned.
If you need mortgage assistance and dealing with your lender has been a negative experience to date, remember there are mortgage forbearance professionals and attorneys who deal in this daily and can get through quicker than you which makes their fee more affordable. If you hire one, make sure that they are reputable. The State Attorney General’s office has recently cracked down on this due to opportunists taking advantage of people with distressed properties. Ask the individual for references from other recent customers, a copy of any licenses they might have and check them out, especially if you are asked for money to go into any kind of escrow account.
Speaking of escrow accounts, they can also help you if, like Howard, you do it yourself. Talk to your attorney about setting one up to put your mortgage payments in if your lender will not talk to you unless you are in default. We do it in commercial management over rent and repair disputes.
Again, whatever you do, be shrewd and make sure the people helping you are trustworthy.
If you are interested in seeing what he has to say, email him at Howard@chinesedrywallscreening.com
County Appraisers usually have cut off dates for negotiating reductions in taxable values for the year. If your County has passed that date and you did not already ask for a reduction based on the presence of tainted drywall, ask them if they will provide a letter for you to use to talk to your lender. They might be willing to do that. The letter could state that they have been adjusting value for homes similar to yours or in your neighborhood with tainted sheetrock and what the typical percentage of drop of value is. They might ask that you provide documentation to them first though proving you have it. You will also need that for the lender.
Also, take note on what Howard says about the impact of this on his credit record. This has been another common concern I have heard expressed on why people do not ask for help from their lender. What he says is good news for people who are concerned.
If you need mortgage assistance and dealing with your lender has been a negative experience to date, remember there are mortgage forbearance professionals and attorneys who deal in this daily and can get through quicker than you which makes their fee more affordable. If you hire one, make sure that they are reputable. The State Attorney General’s office has recently cracked down on this due to opportunists taking advantage of people with distressed properties. Ask the individual for references from other recent customers, a copy of any licenses they might have and check them out, especially if you are asked for money to go into any kind of escrow account.
Speaking of escrow accounts, they can also help you if, like Howard, you do it yourself. Talk to your attorney about setting one up to put your mortgage payments in if your lender will not talk to you unless you are in default. We do it in commercial management over rent and repair disputes.
Again, whatever you do, be shrewd and make sure the people helping you are trustworthy.
Wednesday, October 14, 2009
The FDIC has a stake in tainted drywall remediation
There is an article in the South Florida Business Journal this week about a partnership with Northwest Investments, LLC and Starwood Capital and some other groups. They have bought a significant portion of the Corus Portfolio and the FDIC is partnering with them. I think the thought is that by working with a group willing to pay more than what the assets are really worth it can help stabilize the South Florida real estate market because it helps establish a higher appraisel value in sales for the rest of the market. One of the problems in commercial real estate in the last year is that sales have virtually stopped because there were few transactions to establish value and the opportunity or "vulture" funds were hesitant to buy in case prices dropped even lower.
This is in effect a double bailout - it keeps prices relatively stable for all property owners (bailout 1) and it provides significant equity to an opportunity fund (bailout 2). I don't have a problem with that - I lived in Miami in the early 80's when the condo market crashed then and it was not a happy time.
However, apparently some of those units have tainted drywall. This means the FDIC now has a stake in making sure there is some sort of remediation protocol shortly. I wonder if they have realized that yet?
This is in effect a double bailout - it keeps prices relatively stable for all property owners (bailout 1) and it provides significant equity to an opportunity fund (bailout 2). I don't have a problem with that - I lived in Miami in the early 80's when the condo market crashed then and it was not a happy time.
However, apparently some of those units have tainted drywall. This means the FDIC now has a stake in making sure there is some sort of remediation protocol shortly. I wonder if they have realized that yet?
Saturday, October 10, 2009
Help needed now for people with "tainted" or Chinese Drywall
One of my homeowners I keep in contact with from Vrginia asked me yesterday to send over my thoughts on what people impacted by Chinese drywall need for a list they are compiling as a result of a meeting in Washington DC this past week.
Here were some of my thoughts plus more:
We need to find out ASAP what the identifiable markers are and if they are consistently found in tainted sheetrock so we can cut loose on remediation protocol that can certify a house as clean.
A certification has to be based on a measurable scientific basis by someone who has a license at risk. That is going to be determined by the scientists and researchers if they can find a common marker. If they cannot find a marker, then the Florida Drywall Coalition’s “smell” and HEPA vacuuming protocol or whatever Spiderman Mullohand and his group comes up with might be sufficient, at least for now. At least it is something and involves qualified people with licenses.
We need FEMA assistance or help for people who have medical impacts or children and need to get out temporarily. This could also be financial assistance through mortgage forbearance or rent assistance programs.
We are going to have to get help for homeowners if their homeowners insurance cancels; the lenders will demand that because of their cancellation clauses in their loan documents. We need the government to hold insurance companies accountable; just like we need financial oversight reform we also need it on all insurance. Whether it is health, home, auto or professional. It is unfair to charge exuberant rates and then refuse to pay, cancel or pull out just because things got unexpectedly riskier than you anticipated. If you are going to play, play fair.
We need lower thresholds on tax deductions to assist people on repair, especially if it is coming out of their pocket. We also need to widen the scope to include deductions for temporary places to live, etc.
Here were some of my thoughts plus more:
We need to find out ASAP what the identifiable markers are and if they are consistently found in tainted sheetrock so we can cut loose on remediation protocol that can certify a house as clean.
A certification has to be based on a measurable scientific basis by someone who has a license at risk. That is going to be determined by the scientists and researchers if they can find a common marker. If they cannot find a marker, then the Florida Drywall Coalition’s “smell” and HEPA vacuuming protocol or whatever Spiderman Mullohand and his group comes up with might be sufficient, at least for now. At least it is something and involves qualified people with licenses.
We need FEMA assistance or help for people who have medical impacts or children and need to get out temporarily. This could also be financial assistance through mortgage forbearance or rent assistance programs.
We are going to have to get help for homeowners if their homeowners insurance cancels; the lenders will demand that because of their cancellation clauses in their loan documents. We need the government to hold insurance companies accountable; just like we need financial oversight reform we also need it on all insurance. Whether it is health, home, auto or professional. It is unfair to charge exuberant rates and then refuse to pay, cancel or pull out just because things got unexpectedly riskier than you anticipated. If you are going to play, play fair.
We need lower thresholds on tax deductions to assist people on repair, especially if it is coming out of their pocket. We also need to widen the scope to include deductions for temporary places to live, etc.
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