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Comments on Development of a Moisture Management Program

We will be collecting comments until January 31, 2006.

We are collecting your comments on the results of the first phase of research on the market potential and challenges to development and implementation of a comprehensive moisture management program by contractors.

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Moisture Management Program Concept

Research to date has produced a literature survey and a ?situation analysis? that identifies over $150 billion of building asset value annually at risk for moisture damage by 2008. Water intrusion and moisture damage are a leading cause of premature replacement of building components. Nationally the cost of these building failures is projected to reach $34 billion annually in 2008, excluding major storm events.

The research suggests that contractors, armed with knowledge of how water damage and moisture intrusion occur, and some basic methods and tools for preventing these problems could improve the situation. This can happen, the study suggests, by placing the responsibility for a ?moisture management program? for a construction or renovation project in the hands of one specialized contractor, who becomes responsible for critical building components that will protect the building from moisture damage. For existing buildings, such a specialized contractor could offer a retrofit package of preventive measures.

Remaining Questions

Further research will be necessary to provide the details of the offering, associated costs, quantified benefits, and views of industry experts in both the seller and buyer markets. However, the first estimates of the scope of real estate assets at risk and that the offering will only nominally increase the total cost of a construction project, suggest that a compelling and well supported value proposition is possible for a moisture management offering.

Additional research, including conversations with industry leaders, will be used to explore and clarify several points that were raised in this analysis.

1. Resolve what constitutes a Moisture Management Program from the perspective of various participants in the value chain of design, construction, and ownership of a building

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2. Establish the degree to which exclusions for insurance coverage of damages from mold have changed the insurance industry view of the need for moisture management

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3. Determine the potential role and likely degree of acceptance for a moisture management offering among the design-build community

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4. Develop an initial sense of the potential for commissioning to serve as a wedge for an introduction of a moisture management offering

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5. Establish the extent to which building owners are acting on substantial preventive measures, responding primarily to complaints or incidents, and what triggers their action

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6. Segment the overall construction market more clearly to identify the best opportunities for volume and niche opportunities for market entry and favorable profit margins

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Additional comments:

The National Center for Energy Management and Building Technology (NCEMBT) is studying the potential for the development of an integrated offering of a moisture management program for contractors. This work is funded by US Department of Energy Cooperative Agreement No. DE-FC36-03G013072. To learn more about NCEMBT, visit their website at www.ncembt.org.

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