New house construction has developed a problem on the exterior walls.

The OSB panels are bending / bowing on the horizontal and vertical axis
caused by putting the panels too close together according to the GP
representative (supposed to be 1/8 inch between each sheet on the
vertical to allow for expansion). This is further supported by each
panel having the 1/8 inch requirement written on them. In the house
the OSB panels are touching each other which does not allow for the
necessary expansion. The problem is that the 2x4's have not been
sufficiently strong enough to prevent the panels from moving which then
moves the 2x4's which prevents having a "flat" wall for the sheet rock.
The brick wall on two sides is suppose to hide the problem on the out
side.

The proposed solution is to vertically cut each panel with this problem
which requires removing the 2x4 over it, cutting the panel and replacing
2x4 with a new 2x4. This is suppose to relieve the expansion problem
and/or allow for a "flat" wall to install the sheet rock.

There is no plan to correct the problem on the portion of the two
exterior walls that already has stucco applied since that probably would
cause the stucco to crack now (my opinion).

I have a few questions caused by this problem:

1) Does this proposed solution compromise the structural integrity of
the house especially on the long brick wall ( bricks are attached to
this wall which is stabilizing the bricks and the inside sheet rock )?
I think of this as taking 4x8 panels and making them into 2x8 panels
that still have to provide the necessary strength in two horizontal
directions. I think the horizontal strength is reduced by more than
half when a panel of OSB is cut into two pieces.

2) As the panels continue to move under the stucco does that mean that
it will crack and peal his summer on the outside and the sheet rock
walls also move/crack (the summer heat will cause much more expansion
and bigger movement in both directions)?

Any suggestions or comments would be appreciated.

u4ick