Water causes more construction failures than any other agent. Whether from leaks, air, floods, failed plumbing, or fire hoses, water very often is the culprit where, for example, mold and mildew occurs, adhesive fails, insulation fails to maintain its ability to insulate, or concrete begins to spall and crack. Exactly how water affects buildings and materials is explained elsewhere in this book. The subject of this chapter is the rules applicable to resolving construction-related failures, with particular emphasis on those caused by water. The chapter concludes with a detailed case study analysis of a several-week arbitration arising out of a 16-story hotel riddled with mold and mildew.