There is a need to invest in due diligence whenever one plans to invest in a commercial project. If performing the due diligence would be equated to preparing for take-off, then spending on Environmental Site Assessment would be part of the evaluation done on the aircraft before it is granted the permission to fly. Before you commit to purchasing a given piece of land, there is a need to spend on Environmental Site Assessment (ESA) to identify any cases or potential contamination of soil and water. The findings of the ESA can either keep or kill a site. In most cases, the lenders will require a commercial investor to complete ESA before they can finance a project. You can expect your loan to be processed quickly when you have spent on ESA. Apart from accessing funds from lenders, the decision to spend on ESA is a good practice, considering that it helps you learn any unknown environmental conditions which might not be visibly present.
One type of environmental site assessment is a Phase 1 Environmental site assessment. This entails a visual and historical inspection to learn any potential current or past environmental issues. After the assessment, one can determine the value of a given property or even avoid it if it doesn’t suit the intended use.
The primary reason to spend on Phase 1 environmental site assessment is that it offers much value to any potential buyer. The buyer will be protected against the Comprehensive Environment Response, Compensation, and Liability Act (CERCLA). You will also be protected from “site operator” or tenant liabilities. In a case where one purchases a property that has contamination without knowing, it will become a burden to them.
Risk tolerance is set to vary from buyer to buyer. However, there is a need to gauge the cost of Phase 1 environmental site assessment against the consequences of learning an environmental issue later. The discovery of such issues later will decrease the value of your property. In most jurisdictions, it is the current buyer that shoulders the liability that comes with contamination found on the property, even when they did not cause it.
To benefit from quality, environmental site assessment, there is a need to pick the right company offering the services. One of the elements to check before choosing any experts offering the services is their level of expertise. Before opting to hire the services of a given company, there is a need to learn the number of years that these experts have been providing the services. You are likely to enjoy quality assessment services when you engage experts that have been providing the services for some years.
One will also need to learn the cost of environmental site assessment services before choosing the services of a given company. There is a need to find estimates from several companies that offer the services. One needs to settle for a Phase 1 environmental site assessment company offering the services at a fair price without any hidden costs.