Buyers Beware - Whats in your walls? (Sarasota: loan, attorney)

[dmccauley]

Apparently there were homes built using drywall that was made in China. The homes are now giving off foul odor smells such as sulfar and vinegar. The use of the sulfar is also causing corrosion in other parts of the home (plumbing and electric)

"Meanwhile, the investigation into how widespread the problem is in Florida and beyond continues. The state is aware of about 50 complaints, with 30 coming from sites including Sarasota County south along Florida's west coast. Manatee and Pinellas also are among the affected counties. Another case in Virginia surfaced last week."

you can read the full article by clicking here

Drywall worries affect Lakewood Ranch homeowner | HeraldTribune.com | Southwest Florida's Information Leader

[Big House]

Originally Posted by dmccauley

Apparently there were homes built using drywall that was made in China. The homes are now giving off foul odor smells such as sulfar and vinegar. The use of the sulfar is also causing corrosion in other parts of the home (plumbing and electric)

"Meanwhile, the investigation into how widespread the problem is in Florida and beyond continues. The state is aware of about 50 complaints, with 30 coming from sites including Sarasota County south along Florida's west coast. Manatee and Pinellas also are among the affected counties. Another case in Virginia surfaced last week."

you can read the full article by clicking here

Drywall worries affect Lakewood Ranch homeowner | HeraldTribune.com | Southwest Florida's Information Leader

They tried to sell it here. We looked at it. I doesnt have the required U.L. approval, and without that it does not meet the required fire ratings. We couldn't determine if it was made of gypsum, as required by U.L. and other companies that do testing. It was a lot cheaper. But because of our concerns and quality control standards we refused to use it, even after our client pressured us to reduce cost. We went through a period when drywall was almost impossible to yet, we had to pull a lot of strings to get the material deliveries made timely, and we could not get any price guarantees during that period either. I could see that a lot of people would take a chance and use it, but because we build huge projects the liability wasn't worth the benefit of getting "stuff" timely.

[dmccauley]

Originally Posted by Big House

They tried to sell it here. We looked at it. I doesnt have the required U.L. approval, and without that it does not meet the required fire ratings. We couldn't determine if it was made of gypsum, as required by U.L. and other companies that do testing. It was a lot cheaper. But because of our concerns and quality control standards we refused to use it, even after our client pressured us to reduce cost. We went through a period when drywall was almost impossible to yet, we had to pull a lot of strings to get the material deliveries made timely, and we could not get any price guarantees during that period either. I could see that a lot of people would take a chance and use it, but because we build huge projects the liability wasn't worth the benefit of getting "stuff" timely.

I can understand why it was used also, I'm sure that noone ever expected this to happen. I feel for both sides, the contractor as well as the homeowner, however one would think if the contractor wants to keep his reputation up for building quality homes they would come to a resolution to help these poor people.

[smiledoc1]

Originally Posted by Big House

They tried to sell it here. We looked at it. I doesnt have the required U.L. approval, and without that it does not meet the required fire ratings. We couldn't determine if it was made of gypsum, as required by U.L. and other companies that do testing. It was a lot cheaper. But because of our concerns and quality control standards we refused to use it, even after our client pressured us to reduce cost. We went through a period when drywall was almost impossible to yet, we had to pull a lot of strings to get the material deliveries made timely, and we could not get any price guarantees during that period either. I could see that a lot of people would take a chance and use it, but because we build huge projects the liability wasn't worth the benefit of getting "stuff" timely.

Big House,
I don't know anything about construction but wouldn't it be a code violation to use unapproved drywall?
The Chinese are also into making dental crowns, but they are loaded with lead. Just type into google "Chinese dental crowns" and you get an eyeful.

[Big House]

Originally Posted by smiledoc1

Big House,
I don't know anything about construction but wouldn't it be a code violation to use unapproved drywall?
The Chinese are also into making dental crowns, but they are loaded with lead. Just type into google "Chinese dental crowns" and you get an eyeful.

It would definitely be a code violation if it were used in Maryland. These things are tightly enforced. You are only allowed to use U.L. rated materials on any fire rated assemblies. There will no doubt be class action law suits that will follow this one.

On the types of projects we do, mostly as a third party builder, we check every single product for job compliance, and usually will submit it to the Architect for review and approval as well. We need to ensure that we are building in accordance with their intent, and if we use something that is not appropriate, we have a significant liability issue, so we are very careful. However developers and home builders often do not follow the strict adherance to this policy that I established for our firm.

If it is true that the drywall out-gases and corrodes pipes, the law suits will definitely follow, and if it poses a health hazard (and there is a very high threshold to prove that), then the class action suits will come into play - of course getting an equitable settlement with China will be difficult at best. The dealers won't survive, so recouping losses is unlikely.

The point is though, that people are being alerted so they can take precautions to protect themselves - at their own expense of course.

[smiledoc1]

Originally Posted by Big House

It would definitely be a code violation if it were used in Maryland. These things are tightly enforced. You are only allowed to use U.L. rated materials on any fire rated assemblies. There will no doubt be class action law suits that will follow this one.

On the types of projects we do, mostly as a third party builder, we check every single product for job compliance, and usually will submit it to the Architect for review and approval as well. We need to ensure that we are building in accordance with their intent, and if we use something that is not appropriate, we have a significant liability issue, so we are very careful. However developers and home builders often do not follow the strict adherance to this policy that I established for our firm.

If it is true that the drywall out-gases and corrodes pipes, the law suits will definitely follow, and if it poses a health hazard (and there is a very high threshold to prove that), then the class action suits will come into play - of course getting an equitable settlement with China will be difficult at best. The dealers won't survive, so recouping losses is unlikely.

The point is though, that people are being alerted so they can take precautions to protect themselves - at their own expense of course.

I would think the homeowner would go after the developer, not the dealer. Of course, the developer could go bust, but aren't they supposed to post some bond just in cases like this? Also, why would such drywall be a violation in Maryland but not in Florida?

[Big House]

Originally Posted by smiledoc1

I would think the homeowner would go after the developer, not the dealer. Of course, the developer could go bust, but aren't they supposed to post some bond just in cases like this? Also, why would such drywall be a violation in Maryland but not in Florida?

Some states follow different codes. There is BOCA, Uniform Building Code, International Building Code, and others, plus they change them all the time. Each State is different. It is tough getting licensed in differing states unless you are an Attorney, Architect, Engineer, Builder, and Accountant. Plus the burden for enforcement sometimes rests with the architect (per their intent), and the Contractor. in some states its one or the other. Most Contractor's don't meet the high standards, and sub-trades rarely do. But, it varies from State to State.

Performance and Payment bonds are usually required by lenders as surety of completion, and to ensure that once the contractor has been paid that the Sub-tier contractors and suppliers are paid, so that no one can file liens on the project once payment has been made one-time. If a contractor does not build it in compliance with the contract then the Performance Bond comes into play, but for smaller type projects they are normally not required - as a cost savings. On larger projects they are almost always required - especially if the builder is third party. (meaning not the developer / builder who posted the equity as the basis of the loan itself).