Dec 07
I have been asked a lot recently about Phase 1s. I realize there is a lot of confusion about them. Let me try to clear the air a bit so to speak.In its simplest terms a Phase 1 is a site visit and document review of the surrounding area to determine if further investigation is advised from an environmental stand point.A Phase 1 inspection is a review of local governmental documents regarding the site to determine what the past usage of the site was along with extensive document review of the surrounding area. It also entails a very involved and detailed site visit by a qualified professional. In addition there is data base information that is gathered and reviewed of the surrounding vicinity to determine if there is a potential risk from an environmental stand point in the immediate area.
These potential risks can be anything from a past gas station on or near the site that might have contaminated the ground water to there having been a dry cleaner on the site that might have spilled chemicals into the ground. There could have been past dumping on the site or an auto repair that did not handle the oils properly, lead in the paint, asbestos, and on and on.
I think you get the picture. The focus of a Phase 1 inspection is environmental not the structure or any of the systems of the building. The systems are the focus of the general visual inspection. They are two separate areas of responsibility. Both are important. Many lending institutions require a Phase 1 clearance before they will lend money.
A Phase 1 inspection is an integral part to many commercial and industrial real estate transactions. One bank that I know of will not lend for any commercial or industrial transaction on real estate over 1.5 million dollars without a Phase I. We are hard pressed to buy anything in the Los Angeles area in the commercial or industrial real estate area for under that.
There are two other aspects to a Phase 1 that may come into play depending on what is found during the Phase 1 inspection and research. These are Phase 2 and Phase 3. As you might assume Phase 2 and Phase 3 are the more involved aspects of the environmental field. Phase 2 involves testing of the site such as coring into the earth and taking samples of the soil along with testing it to determine what is in the soil. The information during a Phase 2 will determine if the site warrants further investigation and/or to be remediated. If remediation is needed this is Phase 3.
Each environmental Phase whether it is Phase 1, 2 or 3, has a very involved set of industry standard requirements. Each requires highly trained professionals to do properly. This is not an area to skimp on. Have a reliable company with vast experience do your Phase 1 inspection. Getting the cheapest deal for something this important I feel could easily be fiscally irresponsible. A properly done Phase 1 inspection really is for everyones protection not just the buyer.
The current rate for a professionally done standard Phase 1 inspection is approx. $1800.00 - $2000.00. Just so you understand to obtain the above mentioned documents is hundreds of dollars by itself. The report ends up usually being hundreds of pages. This price does not usually change unless the site gets very large and very involved. Currently the price stated will usually handle over 90% of all commercial real estate transactions.
I hope this clears the air a bit on what a Phase 1 inspection is.
About the Author
Bob Pace has been a Certified Inspector since 1994 and a licensed contractor for nearly 4o years. For more information about commercial real estate inspections visit his website at http://www.commercialrealestateinspectors.com to find out how he can help with your real estate inspection.
written by Phase I Phase One Environmental Site Assessment, Due Diligence
Informative Articles
May 17
We have partnered with Amazon.com to open an online store featuring products that are relevant to environmental engineers and others who may be working on Phase I or II Environmental Site Assessments or similar commercial real estate projects. We will be adding new items on a regular basis and are open to feedback. Please let us know what you think and and what kind of products you would like to see. Also, be assured that the checkout and payment will go through Amazon.com so it will be 100% secure.
Here are some examples of products we are offering:
- Environmental Site Assessment Phase I: Fundamentals, Guidelines, Regulations
- Commercial Landowner CERCLA Liability Protection
- ASTM Standards on Environmental Assessments
- ASTM Standards Related to Phase II Environmental Site Assessments
- ASTM Standards on Assessment and Remediation
- A Technical Guide for Performing and Writing Phase I Environmental Site Assessments
By Thomas Socha
- Site Assessment and Remediation Handbook, Second Edition
By Martin N. Sara
- Handbook of Environmental Contaminants: A Guide for Site Assessment
By Chris Shineldecker
- Innovative Approaches to the On-Site Assessment and Remediation of Contaminated Sites (Nato Science Series: IV: Earth and Environmental Sciences)
From Springer
- MiniRAE 2000 PID Kit - With Data Logging
From RAE Systems
- CST/Berger 82-10080B 100ft Nylon-Clad Steel Zip-Line, 82-Series Open Reel Tape in FEET/8THS
From CST/Berger
- Conbar Environmental 1-1/2″ X 3′ Non-Weighted Polyethylene Bailer
From Conbar Environmental Products
- Many more books on All Appropriate Inquiry, ASTM 1527 standards, CERCLA, Recognized Environmental Conditions, Brownfield Sites, Superfund Sites, etc
As you can see, we already have many items that will prove useful to environmental professionals. Please contact us with suggestions!
written by Phase I Phase One Environmental Site Assessment, Due Diligence
Exclusive Articles, Informative Articles, News, Bulletins, & Press Releases
May 06
I have published a new sitemap for our website. This should make it easier to get around and find relevant articles and pages. You can view the sitemap by clicking here or by clicking on the “Phase I ESA Sitemap” link in the right hand sidebar.
Our sitemap will show pages, articles, and news on various items relating to Phase I (one) Environmental Site Assessments (ESA’s), Brownsfield Sites, CERCLA Liability, All Appropriate Inquiry, AAI, Due Diligence, Environmental Remediation, DEQ News, EPA News, Commercial Real Estate Risk Assessment, ASTM 1527 Standards, and much more.
written by Phase I Phase One Environmental Site Assessment, Due Diligence
Exclusive Articles, News, Bulletins, & Press Releases
May 05
From CBC News:
A controversial affordable housing project in Fredericton has been scrapped after the costs for environmental studies became too high for the non-profit developer.
In November, Fredericton city council approved Fredericton Non-Profit Housing Corp.’s plan to convert a building on Dundonald Street into a six-unit apartment complex.
Residents along Dundonald Street had argued the building was only zoned for a two-unit complex and that the conversion would bring more traffic to the neighbourhood and destroy its family ambience.
Developer Eldon Toner told CBC News he decided to back out of creating the affordable housing when he learned he’d have to pay more than $30,000 for environmental studies on the site.
“We did a phase one and then a phase two and the phase two was to recommend a phase three environmental study on it and we decided at that time not to because of the cost and the money we had already invested,” Toner said.
The environmental report is required because the building used to be used as a commercial site.
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written by Phase I Phase One Environmental Site Assessment, Due Diligence
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