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Is this a common, known technique or did he just come up with it in the spot?

I assume not every building can do this, or else the city would run out of water? Or it depends where you live?

And at the end of the day, is it just a matter of aesthetics, that your walls don't get stained? Or is it doing other things to preserve value?

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Floodwater is horrible. Full of sewage overflow, agricultural runoff, etc. Any building contaminated with floodwater will at the least need to have all the furniture, floor covering, drywall etc ripped out and replaced. Even then you’re rolling the dice that the timber in the frame won’t just grow mould forever.

To what extent is clean water just as bad, though?

Won't the timber become moldy just the same?

And this is a restaurant. They already removed the furniture, there's presumably no floor covering, etc.

It is pretty smart, but I wonder how much you gain in the end. Everything is still wet and needs to be replaced.

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