Strasburger & Price, LLP Newsletter

  

REAL ESTATE
NEWS

OCTOBER 2002

Prepared by
Walter D. James and
Beth Tiggelaar

REAL ESTATE
PRACTICE AREA

Asbestos Abatement:
To Whom Can an Owner Turn?

The Texas Department of Health (TDH) is responsible for regulating the renovation and demolition of buildings which contain asbestos. The TDH recently issued a new Regulatory Clarification of the role that a general contractor, or other agent, may play in the renovation and demolition of such buildings.

Building Owners

While building owners retain the primary responsibility for any asbestos encountered in the construction, operations, maintenance, or furnishing of a building or facility, a building owner may retain a third party to contract with any asbestos licensee on behalf of the building owner. However, a building owner cannot be insulated from liability for violations of Texas Asbestos Health Protection Rules (TAHPR) by using a general contractor or agent. Properly licensed individuals must perform all asbestos-related activities. TDH will enforce its rules against a licensee when the violations fall under the responsibilities of that licensee, as mandated by the TAHPR.

Building Owners and Their Agents/General Contractors

TDH rules allow: 1) the building owner’s agent to hire the air monitor; 2) the building owner’s agent to contract with the abatement or operations and maintenance contractor; 3) the building owner’s agent to hire the consultant; 4) notification to be submitted by the building owner or its agent; and 5) the notification fee to be paid by the building owner’s agent.

Conflicts of Interest Prohibited by TDH Rules

The TDH rules do have some prohibitions, the purpose of which is to ensure that the work performed can be independently evaluated by someone not working directly for the abatement contractor. A building owner or its agent may hire any asbestos licensee subject to the following three conflicts of interest rules: 1) A consultant may not hire an abatement contractor; 2) an abatement contractor may not hire a consultant; and 3) an abatement contractor may not hire an air monitor. These conflicts rules could limit agents’ hiring practices. A general contractor who works as a licensee on a project may not be able to hire other licensees if prohibited by the conflicts rules. For example, if a general contractor is also the abatement contractor, it could not hire the air monitor or the consultant. The building owner or another agent would have to hire the air monitor and consultant.

Under the TDH Asbestos Program, the building owner retains responsibility for hiring licensed professionals, having a survey done before renovating, and paying fees on time. If an agent is allowed to perform these duties on behalf of the building owner and the agent violates the TAHPR duties, the building owner will retain the liability and may receive the "Notice of Violation." Building owners should select agents who will ensure that the building owner’s responsibilities are performed according to the TDH rules and the TAHPR.
  

For further information on this topic, please contact Beth Tiggelaar at beth.tiggelaar@strasburger.com.

  

     
STRASBURGER & PRICE, LLP    DISCLAIMER
Articles contained within this newsletter provide information on general legal issues and are not intended to provide advice on any specific legal matter. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional counsel.