When weather penetrates a building, it can be a costly issue that compromises the functionality and habitability of the building and may eventually lead to structural issues. While there is no single tactic that will prevent water from entering a building, incorporating Third Party Quality Assurance during construction or renovation is essential for reducing the risk of future weather-related problems. One important step in the Quality Assurance process is Water Intrusion Testing provided by Criterium Engineers’ Certified Technicians.

Understanding Water Intrusion Testing

Water Intrusion Testing, (also known as Water Penetration Testing) is a set of standardized field tests that evaluate the performance of building installations such as windows, doors, skylights, exterior facades, and curtain walls for water penetration resistance. Often, water inadvertently enters a building because of manufacturing defects. At Criterium Engineers, we adhere to standards set by the American Society for Testing and Materials (ASTM International), including ASTM E 1105 “Standard Test Method for Field Determination of Water Penetration of Installed Exterior Windows, Skylights, Doors, and Curtain Walls, by Uniform or Cyclic Static Air Pressure Difference.”

The process includes an initial test on mock-up installations or early installations in the construction of a new building Results are reported and retesting any failed items is scheduled after recommendations are implemented.

This article concerns Water Intrusion Testing as part of the construction process on new structures. This type of testing is also performed by Criterium Engineers on existing buildings during forensic inspections of reported damage for insurance investigations.

Why Water Intrusion Testing is Important

Water intrusion can lead to several issues, including:

• Mold and Mildew Growth: Moist environments are breeding grounds for mold and mildew, which can present health risks to occupants and degrade indoor air quality.
• Structural Damage: Persistent water infiltration can weaken building materials, leading to structural damage and expensive repairs.
• Legal Issues: A building owner may delay closing on a project if there are leaking issues, which can lead to back charges, missed deadlines, and breach of contract claims if a building is not delivered on time. Legal claims may also be brought against contractors after occupancy if unit owners experience leaks.
• Aesthetic Degradation: Water stains and damage can ruin the appearance of a building, affecting its value and appeal.
• Personal Property Loss: Any personal property of building occupants, business inventory or equipment, vehicles, or other items could be damaged if they are inadvertently exposed to water.

While Water Intrusion Tests are only one part of a comprehensive Third Party Quality Assurance program, they are an essential method for reducing the risk of future weather related issues. By including Water Intrusion Testing early, building owners, contractors, and inspectors can identify potential weaknesses in the building envelope system and take corrective actions before significant issues arise.

The Criterium Engineers Testing Process (Based on ASTM E 1105)

Criterium Engineer’s Water Intrusion Testing is conducted in the field and involves the following steps:

1. Preparation: The test area is prepared by installing a test chamber on the interior side of the building component being tested (e.g. window, door, skylight). The chamber is sealed to prevent air leakage.
2. Water Spray Rack Setup: A calibrated water spray rack is set up to simulate rainfall. The system is designed to deliver a uniform spray of water over the test area at a specified rate, usually 5 gph/sq ft.
3. Air Pressure Differential: A blower system is used to create a static air pressure difference between the interior and exterior sides of the building component, with a minimum pressure dependent on the specific installation. The pressure differential is typically set to simulate wind-driven rain conditions.
4. Testing: The water spray is applied while maintaining the specified air pressure differential. The duration of the test and the pressure levels are based on the building’s location and expected weather conditions, but most tests include four (4) five-minute cycles with one minute of rest between.
5. Inspection: During and after the test, the interior side of the building component is inspected for signs of water penetration. Any leakage and the time of the leakage during the test is documented, and the test results are used to assess the performance of the building component.
6. Collaboration: Working with Criterium Engineers provides access to our team of certified Field Technicians, Licensed Professional Engineers, and Building Envelope specialists to discuss potential causes of failing installations and solutions for remediation.

Interpreting Test Results

The results of the Water Intrusion Test provide valuable insights into the weather resistance of building components. If water penetration is detected, it indicates a failure in the building envelope that needs to be addressed, and then retested with the same parameters. Common sources of water intrusion include improper installation, defective materials/components, and design flaws.

Conclusion

Water Intrusion Testing is an essential tool for ensuring the durability and performance of building envelopes. By identifying potential weaknesses and addressing them proactively, building owners and contractors can prevent costly damage or rework and maintain the integrity of their structures. Whether you are constructing a new building or maintaining an existing one, incorporating Criterium Engineer’s Water Testing Services into your quality assurance process is a smart investment in the long-term health and safety of your property.

For real estate investors and property owners, actively managing tax liability is essential in maximizing ROI. One strategy for reducing tax burdens is a Cost Segregation Study, provided by Criterium Engineers. This is often paired with Bonus Depreciation. When combined, these tools allow property owners to accelerate tax deductions, improving cash flow and boosting profitability.

What is a Cost Segregation Study?

Cost Segregation is a tax planning strategy that breaks down a building’s components into different asset classes with varying depreciation periods. Instead of depreciating the entire property over 27.5 (residential) or 39 (commercial) years, cost segregation identifies components such as lighting, flooring, permanent fixtures, or landscaping that can be depreciated over shorter time frames — usually 5, 7, or 15 years. By accelerating depreciation, property owners can claim more deductions in the earlier years of ownership, which reduces taxable income.

What is Bonus Depreciation?

Bonus Depreciation is a tax provision that allows businesses to deduct a large percentage of an asset’s cost in the year it is first used in service, rather than spreading the deduction over its entire useful life. Under the Tax Cuts and Jobs Act (TCJA) of 2017, 100% Bonus Depreciation was introduced for qualifying assets placed in service between 2017 and 2022. This means that assets with useful lives of 20 years or less could be fully depreciated in the first year. The bonus depreciation rate began phasing down in 2023, with the rate decreasing 20% each year until it fully phases out by 2027 (unless extended by new Federal legislation).

How Do They Work Together?

When Criterium Engineers performs a Cost Segregation Study, we identify components of a property that qualify for shorter depreciation lives. These items are then eligible for Bonus Depreciation. For example: in 2024, investors can take advantage of 60% Bonus Depreciation. If $500,000 of a building’s components are eligible, the owner can deduct $300,000 immediately in the year the property is placed into service. This results in substantial upfront tax savings.

Why Does It Matter?

1. Improved Cash Flow: Larger depreciation deductions reduce taxable income, and more cash is made available for reinvestment or other purposes.
2. Maximizing Deductions: Taking advantage of Bonus Depreciation (when available) can lead to significant tax savings, especially for new property owners.
3. Flexibility: Cost Segregation studies can be performed on properties acquired or renovated in past years, allowing owners to recover previously unclaimed deductions.

For the year 2024, investors can take advantage of 60% Bonus Depreciation, with the rate decreasing each year until 2027. Because it is uncertain Bonus Depreciation will be renewed in the future, now is the time to contact us to conduct a Cost Segregation Study for your real estate investments. The opportunity to maximize these benefits is time-sensitive, so acting quickly can yield the most significant tax savings.