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So What's Wrong? It looks fine to Me... 

As a rule of thumb regarding sealants, you should generally caulk at the junction of different materials- Stucco and wood, brick and wood, glass and wood, brick and stucco, stucco and stone- I could go on and on. The applicator that originally installed the EIFS system on this home did not follow specs and install a caulk joint between the wood frame of the window and EIFS system. It looks ok, and is probably somewhat secure when freshly installed, but within months the difference in expansion rates of the materials will cause them to separate.

Let's look closer at this window. Click on the picture for even more resolution.

You can see that there is a crack between the window frame and the stucco.  Any source of moisture now has access to the raw wood of the window frame and the substrate behind the stucco, and anything else behind it. EIFS manufacturer's specifications call for fabrication of a gap between the wood and the stucco for installation of a soft cell foam backer rod and quality caulk bead. Georgia Premier Exteriors uses Dow Corning 795 or Sonneborn NP-1 paintable sealants.

Here is one solution.



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