Osb As Drywall

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I have just been to a home where a contractor is using OSB as an interior wall covering and the odor is overwhelming. This home belongs to an elderly person and I have concerns for her health issues. I have talked the local building inspector and he wasn't heard of any compliant issues using this material as an interior wall covering but admits to the concern for the odors being omitted by the board. Is there an issue here for this woman's heath in the long run?

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Yes, the glues that are used in OSB are not healthy at all.  This material should be removed and replaced with drywall.  Why someone would use this product inside instead of drywall is really weird as it cost more then drywall just to start. 

I copied this from one of the many sites on OSB that provides such information.

OSB and exterior plywood both contain a formaldehyde-based, waterproof resin called phenol-formaldehyde (PF). Compared to the widely used urea-formaldehyde (UF) resin, PF resins emit relatively low levels of formaldehyde. UF resins, which are found in composite materials used in cabinets, shelving, paneling and other products, are more toxic and outgas significantly more formaldehyde than PF-based glues

They go on to say.

Isolating it from the living space. As with construction-grade plywood, it can often be used in a healthy house if it is well-separated from living areas.

So if you see it in the living space it should be removed and replaced with a product such as drywall or paneling.

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