Spectrum Inspection Group Inc.
Caveat Emptor
The Spectrum Inspection Group Inc. Newsletter
Chinese Drywall Update August 19, 2011
 
Greetings!,
 

As a result of the most recent Chinese drywall update that we published last week we received a number of calls to our office with requests for additional information.  Many of the people who called did not get our previous updates that we have been providing over the years.  The majority of the calls came frompeople who are not familiar with the Chinese drywall issue. That's not surprising because for all intents and purposes Las Vegas does not have a Chinese drywall issue.   

 

The subject of Chinese drywall most often comes up when agents have buyers coming in from the Southeast region of the United States where Chinese drywall is a very significant concern.  It is also a concern to many corporate relocation companies.

 

The information I have assembled in this publication will allow you to speak intelligently on the subject of Chinese drywall to your buyers or anyone else who asks.  At the bottom of this publication I have included links for you should you wish to delve further into the subject.  As always should you have any specific questions you can always email us (Spectrum@SpectrumInspectionGroup.com) and we will do our level best to provide you with the information you seek.  We don't know all the answers but we do know where to find the answers and we do not charge anything for providing this service.  We want to be more than another inspection company.  We want to be an asset that any agent or consumer can utilize to get answers to all their structural and mechanical questions.       

 

Paul (in a Myrle acceptable shot)

Paul J. DonohuePresident / Senior Inspector

There is a huge amount of information available regarding Chinese Drywall; too much to include in an email flyer. However if you read on I will give you an overview of the issue including some specific information that pertains to Las Vegas.  Be sure to review the links at the bottom of this publication if you really want to educate yourself on the subject.

 

Sincerely,

 

Paul J. Donohue, Spectrum Inspection Group   

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What is Chinese Drywall?

The term "Chinese drywall" refers to a defective sheetrock or wallboard product that gives off an invisible gas that causes accelerated deterioration of certain components present in homes. This gas also is purported to cause many inhabitants of the homes to become sick. The most frequently reported health issues are irritated and itchy eyes and skin, difficulty in breathing, persistent cough, bloody noses, runny noses, recurrent headaches, sinus infection, and asthma attacks.

 

Made in ChinaThe homes containing this toxic drywall have experienced some very unusual phenomena. Many homeowners have reported a sulfurous rotten egg odor in the home. Air conditioner units fail prematurely. Components such as DVD players, personal computers, televisions, microwave ovens, refrigerators, smoke alarms, and other electronic equipment also fail prematurely. Plumbing fixtures, mirrors and picture frames in the home experience delamination. Copper portions of gas piping in the homes containing this defective product have demonstrated accelerated deterioration.

 

Beyond the health issues and the expense of replacing expensive components in the home the issue brings with it several safety concerns. The risk of fire is increased because of the deterioration of electrical wiring. Smoke detectors in the home may become inoperable or unreliable. The accelerated deterioration of certain components in the natural gas piping systems of the homes is also a significant concern.

 

The term "Chinese drywall" is often used to reference problem drywall.  It is important to note that not all drywall coming from China is deemed to be defective.  The manufacturers of the defective drywall have now all been identified and are listed here.  

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History  

Chinese drywall was first introduced to the United States in 2000 or early 2001. The use of this material increased markedly between 2004 and 2006 as the result of a shortage of domestically produced drywall to meet the reconstruction demands following hurricanes Katrina and Wilma. If you will recall there was also a nationwide residential home construction boom during this time period which further contributed to the national shortage of drywall.

 

cargo shipNearly 60 percent of Chinese drywall imported during this time frame came in through Florida ports. Miami was the largest port of entry, with more than 100 million pounds of Chinese drywall unloaded. This is followed by Port Everglades with at least 80 million pounds and Tampa with at least 50 million pounds of Chinese drywall unloaded.  

 

Other major ports involved in the import of this material include Long Beach and Oakland, California, Seattle and Tacoma, Washington and Vancouver, British Columbia. Shipping records show that at least 550 million pounds of Chinese drywall has been offloaded at United States ports since 2006; enough to build 60,000 average sized homes.

 

The adverse effects of the drywall began to come to the attention of environmental and building officials in late 2008. The first incident report from a consumer was recorded on December 22, 2008

 

CPSC Logo Agencies that were receiving complaints included the Consumer Product Safety Commission (CPSC), the U.S. Department of Housing and Urban Development (HUD), the Environmental Protection Agency (EPA), and the Center for Disease Control (CDC). In 2009 an interagency joint task force was formed headed by the CPSC to collaborate information research and remediation efforts.  If you click on the logo depicted to the right it will take you to the CPSC Drywall Information Center which is the primary source for the information contained herein.   

 

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Currently the state with the most complaints is Florida with 2,177 reported cases. This is followed by Louisiana with 715 reported cases; Mississippi with 245 reported cases; Alabama with 239 reported cases; Virginia with 181 reported cases; and 329 cases reported in the 38 other states where the problem has been reported.

 

FloridaCurrently there are seven (7) reported complaints in the state of Nevada. This is less than one tenth of one percent of all the reported cases. The location of the properties specified in these seven reported complaints in the state of Nevada is not known and the information is tightly held by the authorities.  To see a state by state breakdown of the reported cases click here.  

 

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Identification

Much study and research has been conducted on Chinese drywall since 2008. One of the problems facing authorities was how to identify homes that contained the defective product. In January, 2010 the CPSC and HUD released interim guidance for identification of homes with problem drywall. The identification process is two steps:

 

(1) An initial or threshold inspection to find visual signs of metal corrosion and evidence of drywall installation during the relevant time period, and

(2) The identification of corroborating evidence or characteristics.

 

Corroded Evaporator coils

Air Conditioner Evaporator Coil

The Threshold Inspection is a simple visual inspection which is why it can be performed by any home inspector. It can also be performed by a layman or a homeowner. The Threshold inspection must be performed before an additional corroborating inspection is warranted. The visual inspectionmust show:

 

(a) Blackening of copper electrical wiring and/or air conditioning evaporator coils; and

(b) The installation of new drywall (for new construction or renovations) between 2001 and 2008.

 

Again, a positive result for this step (including both criteria) is a prerequisite to any further consideration. Because blackening of electrical wiring and air conditioner evaporator coils can occur for several other reasons a positive result in the Threshold Inspection does not mean the home is confirmed to contain problem drywall. It only means further testing is warranted. The additional testing required is extensive and too extensive to list here but if you want to learn this information please click on the following link:

 

http://www.cpsc.gov/info/drywall/interimidguidance012810.pdf

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The Las Vegas Connection

Although this is all interesting information most agents only want to know the bottom line: How will this affect me and my clients?

 

LighteningCurrently the possibility of finding a home with Chinese drywall in Las Vegas is only slightly greater than the chance of being struck by lightening. Initially all eyes were focused on the builder Lennar because Lennar is the second largest homebuilder in the nation and is headquartered in Florida where the majority of the defective product has been found. But Lennar asserts that the vast majority of the drywall used to build Las Vegas homes was obtained from a company called CALPLY a California based building supply distributor.

 

The bulk of the (drywall) CALPLY sells in Las Vegas is Pabco Gypsum and is mined and manufactured right here in Las Vegas.  The other drywall distributor used by Lennar is the Winroc Corporation who utilizes local plants for their purchase of all wallboard products.  A spokesperson for Winroc stated that no Winroc locations have purchased any foreign wallboard at any time.

 

drywall installationMost other Las Vegas homebuilders utilized local building supply distributors and it appears that these distributors obtained all their drywall products locally.  CertainTeed Gypsum has a plant in Blue Diamond west of Las Vegas and Georgia-Pacific has a plant at Apex northeast of Las Vegas. The raw materials come from various gypsum mines in the Southwestern U.S.

 

Historically most real estate agents in Las Vegas are unknowledgeable regarding Chinese drywall because the Las Vegas has dodged the bullet and, pragmatically speaking, it is not an issue here. The topic normally comes up when agents have buyers coming in from the Southeast region of the United States where it is a very real concern.    

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Exercising Due Diligence
Because the chances of finding a home built with Chinese drywall in Las Vegas are improbable and not impossible Spectrum Inspection Group continues to provide Level I Threshold Inspections on every home we inspect that was built between 2001 and 2009. This provides peace of mind to those buyers coming in from the Southeastern region of the U.S. and demonstrates an advanced level of due diligence for their agent.  On several occasions the fact that we include the Threshold inspection in the scope of our standard inspection has satisfied corporate relocation clients (who still had to have a radon test performed).  

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Spectrum Inspection Group Inc.
8275 S. Eastern Avenue STE 200-276
Las Vegas, NV 89123