E-Mail:jdt@scpropertypros.comWebsite:www.scpropertypros.com

57 Hasell Street Charleston, SC 29491 (LOCAL) 843.296.5006 (FAX) 843.746.4735

January 8, 2010

Building Envelope Investigation

Property Address

3 Cross LaneIsle of Palms, SC 29451

Report Ordered By:

Mr. Mickey Durham

Project Information

OWNER INFORMATIONOWNER INFORMATION BUYER INFORMATIONBUYER INFORMATION

Owners Buyers N/A

Property Address 3 Cross Lane Buyers Address N/A

City, State, ZIP Isle of Palms, SC 29451 City, State, ZIP N/A

Phone N/A Phone NA/

Builder N/A Buyers Realtor N/A

Address N/A Realty Company N/A

Phone N/A Phone N/A

FAX N/A FAX N/A

PROPERTY INFORMATIONPROPERTY INFORMATION INSPECTION INFORMATIONINSPECTION INFORMATION

Type of Exterior Stucco Date of Inspection(s) 1/8/10

Substrate (if known) ICF walls/CMU foundation Inspector MAM/JDT

Age of Property 2007 Present at Inspection N/A

Square Footage 4800 Temperature / Humidity 45

Stories 3 Weather Conditions Sunny

Type of Windows vinyl Last Rain 1 day

Inspection Test EquipmentInspection Test EquipmentInspection Test EquipmentInspection Test EquipmentInspection Test EquipmentInspection Test Equipment

Test Equipment DescriptionTest Equipment Description Test RangeTest RangeTest Range Setting

Low Medium High

A Tramex Interior Moisture 10-12 13-18 19-25 2

B Tramex Exterior Wet Wall Detector 10 - 20 21-50 51-100 4.5

C Delmorst Moisture Probe Meter 10-15 16-25 26-99 2

D Structural Resistance Tester (SRT) >44 = Pass <44 = Fail Higher is betterHigher is better

Important Note:Important Note:Important Note:Important Note:Important Note:Important Note:The test equipment is used to help locate problem areas. It must be understood that the test equipment is not an exact science but rather good tools used as indicators of possible problems. At times, because of hidden construction within the wall cavity, the meters get false readings or no readings at all. Some meters will pick up on metals, wiring, unique wall finishes, etc. Positive readings do not always mean there is a problem, nor do negative readings necessarily mean there is not a problem. We do not use the equipment to obtain exact moisturecontent, but rather to obtain relative readings between suspected problem areas and non problem areas. This information is then used to help determine potential problem areas which may warrant more investigation.

The test equipment is used to help locate problem areas. It must be understood that the test equipment is not an exact science but rather good tools used as indicators of possible problems. At times, because of hidden construction within the wall cavity, the meters get false readings or no readings at all. Some meters will pick up on metals, wiring, unique wall finishes, etc. Positive readings do not always mean there is a problem, nor do negative readings necessarily mean there is not a problem. We do not use the equipment to obtain exact moisturecontent, but rather to obtain relative readings between suspected problem areas and non problem areas. This information is then used to help determine potential problem areas which may warrant more investigation.

The test equipment is used to help locate problem areas. It must be understood that the test equipment is not an exact science but rather good tools used as indicators of possible problems. At times, because of hidden construction within the wall cavity, the meters get false readings or no readings at all. Some meters will pick up on metals, wiring, unique wall finishes, etc. Positive readings do not always mean there is a problem, nor do negative readings necessarily mean there is not a problem. We do not use the equipment to obtain exact moisturecontent, but rather to obtain relative readings between suspected problem areas and non problem areas. This information is then used to help determine potential problem areas which may warrant more investigation.

The test equipment is used to help locate problem areas. It must be understood that the test equipment is not an exact science but rather good tools used as indicators of possible problems. At times, because of hidden construction within the wall cavity, the meters get false readings or no readings at all. Some meters will pick up on metals, wiring, unique wall finishes, etc. Positive readings do not always mean there is a problem, nor do negative readings necessarily mean there is not a problem. We do not use the equipment to obtain exact moisturecontent, but rather to obtain relative readings between suspected problem areas and non problem areas. This information is then used to help determine potential problem areas which may warrant more investigation.

The test equipment is used to help locate problem areas. It must be understood that the test equipment is not an exact science but rather good tools used as indicators of possible problems. At times, because of hidden construction within the wall cavity, the meters get false readings or no readings at all. Some meters will pick up on metals, wiring, unique wall finishes, etc. Positive readings do not always mean there is a problem, nor do negative readings necessarily mean there is not a problem. We do not use the equipment to obtain exact moisturecontent, but rather to obtain relative readings between suspected problem areas and non problem areas. This information is then used to help determine potential problem areas which may warrant more investigation.

The test equipment is used to help locate problem areas. It must be understood that the test equipment is not an exact science but rather good tools used as indicators of possible problems. At times, because of hidden construction within the wall cavity, the meters get false readings or no readings at all. Some meters will pick up on metals, wiring, unique wall finishes, etc. Positive readings do not always mean there is a problem, nor do negative readings necessarily mean there is not a problem. We do not use the equipment to obtain exact moisturecontent, but rather to obtain relative readings between suspected problem areas and non problem areas. This information is then used to help determine potential problem areas which may warrant more investigation.

General Observations

Item Description Yes No Improper Comments

Sealants at window perimeters X X Most windows not sealed or existing sealants inadequate

Mitre joints (bottom corners) of X

Alarm sensor penetrations at windows X

Fixed window units and mullion joints X

Head flashing at top of windows X X Head flashing not properly installed

Sealants around door perimeter X X Existing sealants not adequate or perimeters not sealed

Sealants at door threshold details X No pans or adequate weatherproofing

Penetrations thru door threshold / tracks X

Head flashing at top of doors X X Head flashing not properly installed

Penetrations through stucco sealed X

General appearance POOR

Cracking evident X Walls, floorline band, trim, dissimilar materials

Expansion joints / Control joints X Joints scored off windows-not true expansion joint

Exposed mesh X Walls, trim

Impact damage X Floorline band

Rusting aggregates X

Flat horizontal surfaces XInadequate positive slope allowing water intrusion/material degradation

Delamination / Fasteners X

Terminations and Vinyl accessories X

Transition joints (stucco to brick, etc.) X X Improper transition detail from CMU to wall framing

Termination below grade (ground level) X X System to grade; EPS trim to grade

Termination below or at slab levels X System flush to slab

Deck flashing X X Deck flashings improper or inadequate

Flashing at columns X

Kick-out flashing X

Roof soffit terminations into stucco X No eaves

Eave drip edge flashing X

Sprinkler System X

Gutters X Gutters should be added to help divert water flow

General Observations Cont.....

Front Elevation

GridLocation

ItemDescription

MoistureReadings

Detail Photo ObservationsChapter

Reference

6DSystem

termN/A N/A

Stucco improperly butted flush with porch-should have 2" reveal and flashing as required by code.

5E OpeningsRot

Inside2.5

Improper flashing on windows/doors allowing water ingress into wall cavity

Redshaded

Moisture Saturated 3.6, 3.8Red shaded areas indicate elevated readings around allopenings collected on interior moisture scanning-severe damage observed from extensive

Right Elevation

GridLocation

ItemDescription

MoistureReadings

Detail Photo ObservationsChapter

Reference

6F Flashing N/A 2.1-2.2Improper flashing detail at wall/foundation intersection allowing water ingress and subsequent

2B Columns N/A N/A No column cap flashing as required

Redshaded

InteriorMoisture

2.0-5.0+%

4.4Elevated moisture/damage observed on most openingsduring interior inspection

Rear Elevation #1

GridLocation

ItemDescription

MoistureReadings

Detail Photo ObservationsChapter

Reference

6C Rot 40%+ 2.6 Severe wood brick mold trim rot/damage

4CLight

FixtureN/A N/A No sealant on penetrations through wall system

7G Floorline N/A 2.1Intersection of foundation/framing system requires weep screed to allow water egress-none installed as

RedShaded

InteriorMoisture

2-5% 3.83 red shaded areas indicate interior elevated moisture readings (2-5%) with damage.

Rear Elevation #2

GridLocation

ItemDescription

MoistureReadings

Detail Photo ObservationsChapter

Reference

3F Windows Saturated N/AImproper joint detail around ALL openings in violation of applicable building codes and

Redshaded

Moisture Saturated N/ARed shaded area indicates elevated moisture on interior walls arounf openings with extensive damage.

Left Elevation

GridLocation

ItemDescription

MoistureReadings

Detail Photo ObservationsChapter

Reference

8ISystemTerm

40+% 2.2Foam bands improperly butted flush with grade with inadequate weatherproofing-subsequent termite infestation and damage

6E Deck Elevated N/AInadequate/improper flashing at all deck/porch intersections.

2FRoof

FlashingN/A 6.5, 6.6

Improper/inadequate flashing at roof/wall intersections allowing water intrusion.

Redshaded

InteriorMoisture

Saturated 3.1-3.4Red shaded areas indicates water intrusion and interiorsevere interior damage to window frame rough

Exterior Deficiencies #1

Photo 1.1- Stucco improperly butted flush to wood casing with adhesive sealant failure (roof deck door).

1.2- No head flashing installed on some window headers as required by building code.

1.3- Separation on brick mold miters allowing water intrusion.

1.4- Severe threshold/frame/wood floor damage caused by improper joint/construction details.

1.5- Severe material contamination and failure of wall system components around front garage door entry.

1.6- Separation between dissimilar materials where water has breached the building envelope--caused by improper joint detail.

Exterior Deficiencies #2

Photo 2.1- Improper flashing detail at foundation/wall intersection. Code requires aweep screed for H2O egress at this location.

2.2- Note severe termite damage to EPS foam bands from tunneling activity to access wood components.

2.3- Exposed reinforcing fiberglass mesh observed on aesthetic expansion joints-poor workmanship.

2.4- Note EIFS lamina damage and exposed system components.

2.5- Head flashing was attempted on some openings, but improperly installed and in violation of building code.

2.6- Severe wood damage and rot on rear elevation kitchen door from substandard workmanship and inferior construction.

Interior Deficiencies/Damage #1

Photo 3.1- Extensive/severe water damage and termite infestation to interior window wood trim.

3.2- Complete framing failure around openings caused by termite infestation into wet wood components.

3.3- Damage is so severe that all windows and doors will require removal and replacement to properly remediate.

3.4- Termites use the foam employed to insulate walls as a tunneling mechanism to access moist wood.

3.5- Substantial drywall damage with saturated conditions adjacent to side deck door.

3.6- Window sill damage was prevalent throughout the interior as a result of improper construction.

3.7- Damage was also observed on baseboards from water migration and contamination.

3.8- Rough opening frame and window damage.

3.9- Note complete framing failure around openings with visible termite nesting/infestation.

Interior Deficiencies/Damage #2

Photo 4.1- Black mold, possibly toxic stachybotrys, was observed on third floor ceilings in drywall material.

4.2- Water intrusion created climate conducive to mold growth observed in numerous locations.

4.3- Third location on third floor where mold growth was observed-complete removal and replacement of contaminated drywall.

4.4- Note extensive water damage to interior window trim on front elevation window.

4.5- Termite infestation to crown mold trim on interior window headers.

4.6- Note water stain on floor caused by excessive water infiltration as a result of poor construction details.

4.7- Significant damage to wood flooring from moisture ingress/contamination at door threshold.

4.8- Concrete sub-floors observed under hardwood material will be beneficial in remediation since no deterioration is possible.

4.9- Haphazardly applied caulk joint around electrical attachments.

Basement Deficiencies/Damage

Photo 5.1- Black mold observed in basement drywall material from water infiltration.

5.2- All contaminated basement drywall must be removed and replaced at the time of remediation.

5.3- Note water stain on concrete floor at the grade intersection.

5.4- Mold growth and water intrusion at slab/CMU intersection.

5.5- Note visible water stains in block from water ingress and extensive building envelope failure.

5.6- Toxic black stachybotrys mold is suspected and was observed in both ceilings and walls (basement).

Roof Deficiencies/Damage

Photo 6.1-Note standing/ponding water on roof-should have positive slope.

6.2- Second location of standing water on roof decking-recent rain prior to inspection.

6.3- Waterproofing delamination caused by improper system installation and inadequate construction details.

6.4- Waterproofing system failure over cant strip installations at roof/wall intersections.

6.5- Improper/inadequate flashing detail allowing to breach system at roof/vertical wall intersection(s).

6.6- Roof/wall flashing improperly installed and allowing water to penetrate under flashing details.

CONCLUSION:

The purpose of this investigation was to determine the source of extensive water infiltration andextent of subsequent damage as requested by the client. This home was completed in 2007 andbuilt by Carolina Concrete Homes, Inc. Typically, one may expect the framing system to bewood with a sheathing on the outside to attach the siding. However, ICF (insulated concreteform) construction was employed on the subject structure. Concrete is poured into a cavitybetween two layers (outside and inside) of extruded or expanded polystyrene with reinforcements.Since concrete will not "rot", this wall system is attractive for its integrity and thermal values.However, ALL wall systems must be installed in accordance with applicable building codes anddesign specifications in order to restrict water ingress. Our investigation revealed complete systemfailure and extensive water and termite damage as a result of improper construction.

Our pre-inspection protocol included a complete visual inspection of the entire structure, bothinterior and exterior. Visual examination of the interior revealed a number of locations wherevisible staining and damage of building materials was evident, indicating water ingress into thebuilding envelope (or shell). Testing for moisture content is accomplished with several moisturemeters, both invasive and non-invasive, which included scanning all interior walls to obtain arelative moisture content. Any indications of problem areas identified with moisture scannersare investigated further with a probe meter to ascertain a definitive moisture content. Anyreadings in wood above 20% or 1.0% in sheetrock indicate a potential problem usuallyassociated with exposure of the building material to moisture from water breaching theenvelope.

The CABO building code R703.8, section 1 which states flashing must be installed "At the top ofall exterior windows and doors in such a manner as to be leakproof" The 2003 (and latereditions) International Building Code, section 1405.2 requires that all "exterior walls shallprovide weather protection for the building". Additionally, section 1405.3.2 states that flashingand weepholes be installed at the system termination and structural floors, thus allowingincidental water infiltration to egress the wall cavity. The contractor omitted the requiredflashing detail at system terminations, floorlines, roof intersections and openings. Furthermore,NO construction sealant was applied on any of the exterior walls at intersections of dissimilarmaterials to prevent water intrusion. Consequently, water has already penetrated the exteriorand contaminated underlying building materials. Additionally, severe termite damage to boththe foam wall material and wood framing for openings was identified. The termites use thefoam as a tunneling mechanism in order to access moist wood members. The foam should notcome within 6" of grade level in order to prevent termite infestation. The contractor installedthe foam flush with grade, thus allowing bug infestation. Moreover, over fifteen (15) violationsof application standards relating to the stucco system were also detected, which all deviate from

"industry standards" and good construction practices. ALL code violations and applicationdeficiencies which were detected during this inspection have left the structure susceptible to severe water ingress and subsequent building envelope failure. Consequently, the entireexterior cladding must be removed and replaced during remediation to correct the inherentlydefective design which currently exists on the subject structure. I have compiled and included ascope of work to remediate all contaminated building materials and construction deficiencies asrequested. If you have any questions or comments concerning this report, please feel free tocontact my office.

Respectfully,

James D. ThompsonPresidentSC Property Pros

SCOPE OF WORK

· General Requirements--Permitting, Site Prep, Waste Disposal, Insurance etc

· Site Construction- Landscape, Scaffold

· Exterior-- Removal of exterior, windows, doors, attachments, obstructions -- New doors provided, solid vinyl windows to be re-used -- Code compliant weatherproofing/flashing -- Install code compliant water management/drainable stucco system -- Install five coat waterproofing systems on all decks and roof -- Install new roof -- Exterior paint

· Interior-- Removal and replacement of all 1st floor finishes -- Removal and replacement of second floor exterior walls -- Removal and replace of damaged flooring -- Repair staircase and replace contaminated treads and risers on all 4 floors -- EPA compliant mold remediation -- Install drywall and paint -- Cabinets, counter tops, light and plumbing fixtures to be reinstalled

Cost of Construction -- $284,786

If you need a more detailed cost break-down, please feel free to contact me.