When it comes to understanding Phase 2 Environmental Site Assessment cost, it’s important to understand that it varies widely depending on the complexity of the assessment and the findings from a Phase 1 Environmental Assessment, which occurs first and identifies potentially hazardous substances.
If you need a Phase 2 ESA, this guide will help you better understand the cost of a Phase 2 Environmental Assessment and will discuss average prices and factors influencing costs for a particular site.
Table of Contents
What is a Phase 2 Environmental Site Assessment?
Phase 2 ESAs are a key component of environmental due diligence during commercial real estate transactions. They protect the financial interests of investors, developers, and lenders – and serve to protect human health and the environment.
The scope of a Phase 2 ESA covers a range of investigatory and analysis procedures to uncover detailed information about the state of the site. From reviewing historical records and geological conditions to soil and groundwater testing, Phase 2 ESAs investigate potential environmental liabilities previously identified in a Phase 1 ESA.
Did you know that findings of a Phase 2 ESA do not necessarily have a negative impact on property values? If hazards are found, remediation and restoration can increase property values since it is certified by an EP as safe for occupation.
How Much Does a Phase 2 Environmental Site Assessment Cost?
The general range of a Phase 2 Environmental Site Assessment cost for a standard commercial lot is around $8,000 – $15,000. However, depending on the specifics of the various factors influencing pricing, a Phase 2 ESA can cost as much as $25,000 – $100,000.
The larger end of the cost scale reflects high complexity, high risk, and high acreage commercial properties.
Below, we will provide detailed information about specific commercial site pricing factors.
Factors Influencing Phase 2 ESA Costs
Each commercial site will have unique characteristics and Phase 2 ESA needs. The elements of a Phase 2 ESA that influence the overall cost include:
- The extent of site contamination.
- The size and location of the property.
- The number and type of samples required.
- The complexity of the testing and analysis.
Extent of Site Contamination
The type of chemical(s)/hazardous material(s), the length of time the contamination has been present, the level of contamination, and how far the contamination has spread across (and underneath) the property matter. Are there underground storage tanks or drums?
All of these affect how environmental professionals perform their investigations, testing, and corresponding safety protocols. The more severe the contamination and the greater the spread across the site, the greater the costs.
Property Size and Location
Larger properties will take more time for assessment than smaller sites due to the amount of ground needed to perform materials sampling. If the property is difficult to access or the terrain is difficult to maneuver, this will also affect costs.
If the site is remote, this is another factor to consider in the overall price due to the necessity of additional travel time for environmental professionals and moving necessary equipment and materials to the site. The more remote the property, the greater the transportation costs.
Number and Type of Samples
The necessary samples will depend on the site’s characteristics and the findings of the Phase 1 ESA, which typically includes both soil and groundwater samples. Larger sites will require more manpower, tools, and equipment.
The soil sampling costs will reflect where the samples are taken and how many are needed to obtain accurate tests. The method and the time the hazards have been present will also make a difference. Do engineers/geologists have to contend with underground storage tanks?
These soil sampling needs will be important to Phase 2 ESAs and for planning appropriate remediation methods.
Groundwater sampling will also help determine the extent of the contamination. Costs will be associated with the characteristics of the samples, as well as the installation and number of monitoring wells. Larger sites that need a higher number of samples and wells will increase costs.
Complexity of Testing and Analysis
The type of contamination will determine the types and complexity of testing and analysis. Some may be broad – others in a narrower range. What type of hazards are present?
Dry cleaning fluid, automotive fuel, heavy metals, heating oils, etc., will have their own testing procedures. Some sites may need specialized and intricate testing and analysis procedures, which can lead to higher costs.
Subsurface Composition
Soil, sand, and dirt will require certain standard equipment. These require simpler, straightforward sample collection methods. However, if rocks and stones need to be drilled for sampling, this takes more time and more expensive equipment.
Equipment Requirements
Each site will require its own equipment for drilling into rock or finding underground storage tanks. Specialized testing, such as electromagnetic surveys, will typically increase costs.
When detailing the cost of Phase 2 Environmental Site Assessment, each factor can be limiting or serve to increase pricing, depending on the specific characteristics involved, which could equate to hundreds to thousands of dollars.
Importance of Conducting a Phase 2 ESA
When looking into Phase 2 Environmental Site Assessment cost, it is important to understand its purpose. Phase 2 ESAs are critical in protecting property investments and ensuring regulatory compliance.
They provide essential site information, helping accurately identify environmental risks — potentially saving significant remediation costs in the future.
Detailed Site Characterization
Obtaining a comprehensive understanding of site conditions is necessary to get accurate results. In turn, this detailed information not only reveals potential expensive liabilities but also protects business owners, investors, and lenders from these liabilities.
Without a detailed site characterization, potential and costly hazards may be missed.
Regulatory Compliance
Phase 2 ESAs are key to meeting legal requirements for commercial site purchases. If a property owner or investor fails to comply with regulatory compliance issues, they could face enforcement fees and other penalties from the government. Additionally, businesses could be subject to financial woes due to costly remediation at the site.
The Phase 2 ESA Process Simplified
While each Phase 2 ESA is customized, the overall process is standard across sites. Certain steps and key actions need to be taken at each stage.
Here are the steps that are typically involved in the Phase 2 ESA process – from initial investigation to final reporting:
Initial Investigation
Planning for the Phase 2 ESA begins. These preliminary steps prior to fieldwork and sampling typically include such actions as:
- Reviewing the previous ESA reports from Phase 1
- Designing the scope of work needed for the site
- Determining sampling methods
- Deciding on the necessary equipment
- Securing access to the site for testing
Once the initial investigation is complete, it is time to go on-site.
Fieldwork and Sampling
Engineers, geologists, and other environmental professionals investigate the property through field tests and sample collection. The process typically includes such actions as:
- Mobilizing the team and transporting them to the site
- Performing preliminary site walk and inspection
- Conducting a geophysical survey
- Drilling across the site per plans and methods
- Installing monitoring wells and boreholes
- Locating underground tanks or drums
- Collecting soil, water, or air samples
The specific actions and their extent are customized based on the detailed site characteristics. Properties with greater complexity and acreage take longer to complete this step.
Site samples are then analyzed at the laboratory.
Laboratory Analysis
Chemists and associated laboratory professionals will analyze the samples in accordance with EPA and ASTM method standards. They will determine if any contaminants are present and identify those that are found. Contaminant levels will be compared against current government screening levels to determine if legal limits have been surpassed.
Other actions may include toxic vapor intrusion studies, inhalation risk studies, and human health risk model development.
The results, including comprehensive data analysis, are then used to compose a Phase 2 ESA report.
Reporting and Recommendations
The methodologies, findings, and conclusions are compiled into a final report, including identifying and describing contamination. The report may include informative data tables that summarize the scope of the assessment.
Actionable recommendations are included and customized based on the findings and appropriateness for the particular site.
The timeline of a small-scale Phase 2 ESA for AOTC is an average of 20 days. However, more complex, high-risk, or high-acreage properties may take longer due to the complexity of the scope, site access issues, complex conceptual models, or large property areas.
How Can You Get a Cost-Effective Phase 2 ESA?
Are you concerned about the Phase 2 Environmental Site Assessment cost?
AOTC has a strong history of providing cost-effective Phase 2 ESAs. We offer competitive pricing without compromising on quality. Our speed and accuracy set us up to exceed project time expectations, resulting in cost savings and peace of mind.
AOTC’s Pricing Structure
We stand out from our competition by being upfront and honest, providing transparency and fair pricing. AOTC maintains clear communication when pricing our projects.
Quality and Experience
Our team has solid experience with Phase 2 ESAs and is dedicated to providing detailed and accurate Environmental Site Assessments.
Is a Phase 3 ESA Required After a Phase 2 ESA?
A Phase 3 ESA is not always required after a Phase 2 ESA. The findings of Phase 2 will determine whether or not the next phase is necessary.
When is a Phase 3 ESA Needed? If the results of Phase 2 show that hazardous substances that need to be remediated have been found at the site, then Phase 3 will be typically required.
During Phase 3 ESAs, the standard objective is to determine the extent of the contamination. There is a broader site investigation that often includes:
- Assessment of subsurface soil
- Sediment testing
- Groundwater testing
- Determination and analysis of groundwater and soil contaminant pathways
- Analysis of remedial strategies
- Development and execution of a remediation work plan
Additional Costs
The necessary testing and remediation techniques significantly influence the costs of a Phase 3 ESA. The type of contaminant and extent of contamination across the site will also be key to overall pricing.
Contact Us for Your Phase 2 ESA Quote Today
When you need a cost-effective, quality Phase 2 ESA, AOTC is the company you can rely on.
Working with experienced, trusted environmental professionals is crucial, given the stakes involved in commercial property purchase, development, and environmental compliance.
AOTC has an enduring commitment to excellence in environmental assessments, and we work diligently to help you achieve your property and liability goals.
Contact us for a customized quote for your Phase 2 ESA needs and to learn more about our environmental remediation services.