Builders discuss licensing

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Thursday, April 11, 2002

4:52 a.m. CT

Builders discuss licensing

By THOMAS DOYLE

tdoyle@...

Builders across the state are discussing state licensing and building

standards as a possible way of dealing with rising mold liabilities.

About a dozen local builders shared their thoughts during a Tuesday meeting.

" Liability in Texas has become a crisis, " said Ron Connally, a local builder

and representative to the Texas Association of Builders.

Many people are suing builders when they find mold in their homes, Connally

said. Such claims are based on the presumption that builders made errors

that allowed excessive moisture into the home, which allowed mold to grow,

Connally said.

Compliance with state standards would demonstrate a builder had not done

substandard work and therefore was not at fault for the mold, he said.

State oversight could possibly reduce the mold problem at its source,

Connally said.

" If it's a builder issue, we want to find out what that is so we can avoid

that in builder practices. So we are doing extensive research to determine

what's causing this mold issue, " he said.

State standards would ensure builders would comply with methods to reduce

the risk of mold, Connally said.

Regulation would be best if it originates from the builder community, he

said.

" We might as well do it to ourselves, because if we don't some interest

group will, " Connally said.

The state association is drafting a proposal for members to consider at the

end of April, Connally said.

The issue of state licensing has been discussed several times in the past,

he said.

Builders at the meeting were generally in favor of licensing, some

reluctantly so.

More regulation means more paperwork and bureaucracy, said builder Bill

Wolfe.

" I don't think it's good for us except from the standpoint of reducing our

liability, " he said.

But Wolfe said he would have to support it given the current situation.

In surrounding states where there is no mold coverage there are no mold

problems, said Dean Bedwell, another local builder.

" Mold is money. The people that are in the mold business are getting rich, "

Bedwell said.

If Texas insurance companies would exclude mold, the money would be removed

from the mold industry and the problem would decline, he said.

" Our utmost interest is offering affordable housing for Texas, " Connally

said.

Builder said if claims and litigation are reduced, ultimately it

would help potential homeowners.

If someone can't insure their home, they can't get a loan to buy it, he

said.

The increasing number and dollar amount of mold claims has led some major

insurance providers to increase rates, making it harder to afford insurance,

said Jim , director of public information with the Texas Department of

Insurance.

Other companies have reduced their levels of coverage, he said.

" As we are unable to obtain the coverage for mold, then that leaves us and

the homeowners more liable for it, " Wolfe said.