Understanding Moisture Intrusion In Building Envelopes

By Nolan Radke

The building envelope is the physical shell of a structure. It includes the walls, roof, windows, doors, and foundation—essentially, any component that separates the interior living space from the exterior environment. The condition of the building envelope directly affects interior temperature, air quality, light exposure, and noise levels. Poor envelope performance can lead to issues such as higher energy costs and moisture intrusion.

One of the most serious concerns is moisture intrusion. When water or moisture enters a building through its envelope, it can damage structural materials, reduce property value, and harm occupant health. Moisture intrusion refers to the unintended movement of water or water vapor into a building’s systems or structure. It is the leading cause of building damage and construction-related disputes. In fact, nearly a quarter of all home insurance claims are related to water damage and freezing events (Consumer Affairs – Journal of Consumer Research, 2024).

Moisture intrusion can occur in several forms. The most damaging is bulk water, which includes rainwater, melting snow, or surface runoff that penetrates the structure. Water can also enter through porous materials such as concrete, brick, or wood. For example, an improperly waterproofed concrete foundation can allow moisture to rise into adjacent walls. Condensation is another common source—forming when warm, moist air contacts a cooler surface. This often occurs when air moves through poorly insulated or sealed areas of the building envelope. Over time, excessive condensation can lead to mold growth and material deterioration.

Several factors can contribute to a compromised building envelope. The design may be inadequate, with weak transitions at roof-to-wall joints or poorly detailed window seals. The site may lack proper drainage or layering, or workmanship may have been rushed, resulting in improper installation. Additionally, materials such as sealants or flashing can fail over time, or may have been improperly installed, allowing water to enter. Although these issues are preventable and correctable, ensuring quality construction and thorough inspection from the start should be a top priority for builders.

To prevent weaknesses in the building envelope, builders must ensure strong coordination among all trades involved in construction. This includes design reviews, pre-installation meetings, and regular site inspections to verify that work is completed properly.

Finally, there are key indicators that may reveal water intrusion within a building. Visual signs include yellow or brown discoloration on walls or ceilings, mold or mildew growth, peeling or blistering finishes, and warping or buckling of materials. You may also notice musty odors or persistent condensation in certain areas—all strong indicators of hidden moisture.

Handling Unforeseen Price Increases

September 2020

by Mike Showalter

Builders and subcontractors, do your contracts between you and your clients clearly state how unforeseen increases in material prices will be handled?  According to an August 22, 2020 article by NAHB …”the recent spike in softwood lumber prices has caused the price of an average new single-family home to increase by $16,148 since April 17, according to NAHB standard estimates of lumber used to build the average home. Similarly, the market value of the average new multifamily home has increased by $6,107 over the same period due to the surge in lumber prices.”

This increase is calculated on the softwood lumber that goes into the average new home, such as any softwood used in structural framing (including beams, joists, headers, rafters and trusses), sheathing, flooring and underlayment, interior wall and ceiling finishing, cabinets, doors, windows, roofing, siding, soffit and fascia, and exterior features such as garages, porches, decks, railing, fences and landscape walls. 

CDR has long advocated careful consideration of updating construction contracts and subcontracts.  Builders and subcontractors need to be able to cover the costs of construction in order to derive their anticipated profit and overhead.  Construction clauses taking into consideration potential increases in material and labor costs are prudent.  Likewise in construction contracts between Builder and Client there should be clear language dealing with unanticipated changes in costs for materials, labor, and working conditions due to unforeseen events (e.g. COVID).

Who pays for the spike in lumber prices that occurred between April and August 2020, or COVID related costs since March 2020?  You want that answer to be in the contract and not determined through litigation.

Owners - Balancing Collaboration and Trust

November 2019

by Janet Showalter

Even before a project begins, owners can be better prepared to stay on top of the details and decision-making by having a way to organize their ideas and records.  The designer, architect and contractor (the project “partners”) will need the owner’s cooperation in making decisions and choices in a timely manner, so being organized is key.  With a system in place, owners will be more confident that what they have conveyed to the partners will be properly addressed.  It is helpful to create a notebook to include clippings from magazines, newspapers and brochures to share design ideas with the partners.  Add sections to the notebook for: 1) signed contract that includes a projected weekly schedule, 2) invoices, 3) change orders, 4) paint color choices, 5) appliance choices, 6) plumbing fixtures, 7) bids, etc.

After work begins, owners should be very mindful about any changes that need to be made in the design, work and finishes.  Good records and communication will help avoid misunderstandings.  Other guidelines include the following:

• When a cost and contract are proposed, review it with legal and building professionals before signing.

• Obtain, review, modify and sign all change orders BEFORE the work on those changes begins.  Change orders can either cost more or provide a credit.  Keep copies of the signed change orders.

• Monitor the project’s schedule and cash flow closely, keeping and organizing all invoices and supporting documentation. This keeps the partners accountable and the owner aware.

• Keep a photographic record of the project (before, during and after).  Be sure to take distance and close-up photos.  Video is also helpful.

• Keep a written log of conversations, decisions and daily job diary. Keep all correspondence including texts and phone messages.

• Maintain open communication. Most disputes start with lack of communication.

• If something is confusing, ask for clarification. Do not wait until it is too late to reconsider.

• If satisfactory answers from the partners are not being provided, ask for objective counsel from experts. Surprises cost time and money.

• Ensure final “punchlist” items are completed and lien waivers are in hand prior to making final payment.

• Trust the partners to do their work.  Micro-managing is counterproductive to the end goal of having a harmonious and completed project.  Owners doing their part allows the partners to do theirs.

 For a fuller scope of collaborating on a project, go to the Consumer Guide in our website. 

Navigating Xactimate in an Insurance Loss

March 2019

by Alison Thilo

In the event of a loss to property related to fire, natural disaster, broken pipes, accidents or acts of God, owners turn to insurance carriers to recoup the value of the property.  Xactimate, used by adjusters and contractors nationwide, is a powerful estimating tool developed to price out every step of the claim process.  This bulletin will briefly explain the three primary types of estimates: content manipulation, mitigation of the damage and structural repairs.  Each category involves direct valuation of damaged property to be paid out by the insurer, thus it is beneficial to separate these three estimates. 

Content Manipulation

Xactimate allows the “contents subcontractor” to price out every aspect of manipulating, moving, cleaning and storing contents.  The contents subcontractor hired for this portion is often retained by the general contractor who will complete the structural repairs. However, if contents need to be manipulated as part of the emergency services mitigation, this service could be broken up.  In the event that contents end up in separate places, it is important for the insured to document and remain in communication with their contractors to reduce unnecessary storage costs. 

Mitigation

Emergency repairs are often considered the mitigation portion of a loss.  Owners should vet and research reputable emergency service contractors prior to any loss as this step is crucial to successful safety and structural repairs.  Mitigation contractors tend to communicate directly with the insurance company on the status of a dry out and will invoice the adjuster directly.  This portion of the loss often is the first aspect to be paid in full.  Xactimate can be used to price out special services such as industrial hygienists, asbestos testing, and mold remediation.  However, in an emergency situation these tests are conducted after the cause of loss is controlled.  Then the testing occurs, possible mitigation protocols are outlined (for example, if asbestos is found in wet drywall, the hygienist will outline a mitigation protocol for safe removal), and completed mitigation follows.

Structural Repairs

The structural repairs may begin once all mitigation and protocols are complete.  The owner should obtain a qualified, experienced restoration contractor to perform these services.  Owners have the opportunity to choose any licensed general contractor they prefer.  Hidden damage often can be found as structural repairs commence so it is highly important for a contractor to stop and document each step for transparency and to adjust the overall scope of repairs with the insurance adjuster.

Contractors who utilize Xactimate for their estimating purposes will have more success communicating, documenting and working with an insurance adjuster to complete the project.  Consider becoming familiar with Xactimate if you are involved in restoration work.

Fluid Applied Coating Preparation

 July 2018

by Bryce Given

Coatings are used for moisture control and as bonding agents and weatherproofing on surfaces in new building construction and renovations.  Examples of uses include decks, balconies, garage floors, roofing, above grade wall, below grade wall, and under interior floor coverings.  Frequently coatings are used to prepare surfaces for finish surfaces or layers of moisture control. Surfaces to receive coatings are usually wood sheathing such as plywood or similar, concrete, metal panels or sheets, or gypsum board.

Common to most coatings is proper preparation of the surface of the substrate.  Proper surface preparation supports good coating adhesion, function, performance and durability.  Each manufacturer may have different recommendations and requirements for surface preparation.  Three key factors common to most installations are a clean, dry and debris-free surface.  Clean means no contaminants, oils, greases, chemicals or unadhered paints remaining on the surface.  Dry means usually less than 5 percent moisture content before application of the coating, but this can vary by manufacturer and product.  Debris-free means that foreign or loose materials must be removed.  In new construction loose materials are often construction debris, dirt, dust and original systems. For an existing building renovation, debris is usually old building construction remnants, paints and adhesives.  

Various methods of preparing surfaces can include: cleaning with solvents, hand or pressure washing, sweeping, mechanical grinding to achieve an acceptable substrate, and air pressure washing such as from a high pressure air hose or media blaster.  Generally, pressure washing is not usually recommended because this adds water to the surface and substrate.  Building in the Pacific NW often occurs during rainy or freezing weather, causing substrates to become saturated or frozen, further requiring extensive drying or warming to achieve coating-ready surfaces.  

Coating failures occur when there is a lack of bond or adhesion to the surface due to an unprepared substrate, poor or incorrect mixing of coating materials, application outside recommended temperature range, or too high of moisture in, on or below the substrate. 

After preparing surfaces for coatings, the surface should be tested for its readiness to receive the coating. Sample area applications of the coating may be able to be tested for adhesion  by means of pull tests or other methods, and the results analyzed and confirmed for acceptance by the manufacturers and the application contractor.