Notice Disclosure And Disclaimer

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MEMORANDUM
To:
BCASWI Builders
From:
BCASWI Mold Task Force
Pages:
Total of 3 pages
Subject:
Mold Liability and Construction Contracts
In order to minimize your exposure for liability relating to mold in your homes, it is imperative that you
educate yourself about these claims and immediately implement the following preventative measures.
1.
Read and implement the material in “A Builder’s Guide to Handling Mold Claims and
Litigation” written by the National Association of Home Builders. It does an excellent
job explaining these claims and how builders can minimize their liability. The Guide is
available at the BCASWI office.
2.
Become educated about and implement construction techniques being successfully
employed by other builders in the Treasure Valley. Many mold claims in this area
involve mold growth in crawl spaces caused by improper grading, plumbing or HVAC
leaks, poor crawl space ventilation or high water tables. As an example, installing
perimeter foundation drains is a technique many builders are successfully using to reduce
the moisture in their crawl spaces and therefore the growth of mold.
3.
Begin attaching to your construction contracts as an addendum the “Notice, Disclosure,
Disclaimer and Waiver” attached to this memo (“Notice and Waiver”). The Notice and
Waiver educates the homeowner about the possibility of mold, informs the homeowner of
their maintenance responsibilities and attempts to waive or disclaim any warranties and
liability relating to mold claims. Please note that the effectiveness of the waiver and
disclaimer provisions is unclear under Idaho law. Nevertheless, they should still be
included in your construction contracts. Ensure that your construction contracts
specifically reference and incorporate the Notice and Waiver. Failing to do so may
prevent the Notice and Waiver from being included in your construction contract thereby
negating its benefits. The Notice and Waiver must be attached to, and be executed
simultaneously with, the construction contract. Handing the Notice and Waiver to buyers
at closing or at your walk-thru will render it null and void. It is essential that the Notice
and Waiver be a “part of the deal” – not a surprise after the fact.
Of Course, there is no way to eliminate your exposure to mold claims, but implementing these
preventative measures will certainly minimize your potential liability.
1

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