The Kratos System incorporates a dual acting membrane applied directly to the existing subsurface inhibiting mold and fungus also protecting the surface from water intrusion while allowing vapor transmission from the inside out. The system adds the benefit of mold proofing from the outside in and qualifies as an asbestos and lead encapsulate. The system overlayment can be applied at dramatically less cost to the owner or insurance company, without relocation of the residents or the extensive damage created by removal. All engineering and code testing has been completed, and code approval has been granted.