Phase 1 Environmental Cost &
Explaining the Phase I Environmental Site Assessment Cost
A Phase 1 Environmental cost varies depending on region and lot characteristics. But the average Phase I Environmental Site Assessment cost ranges between $1,800 and $3,500. In fact, sometimes, Phase 1 ESA prices can be as high as $6,000. This article clarifies that prices can, and do, vary. And just like all other services, suspiciously low prices can result in errors at the expense of the Client. In fact, due to the lengthiness of these reports, errors can be unnoticeable by Clients. Consequently, errors come to light later down the line and can cost a fortune to deal with. Nonetheless, this article provides insight into what to expect when purchasing a Phase 1 Environmental Site Assessment. Additionally, this article highlights some do’s and don’ts when purchasing a Phase I ESA Report. Updated March 3, 2021.
Variable Costs of a Phase 1 Environmental Site Assessment Report
Phase 1 ESA Cost Impact on Site Inspection Effort
Property characteristics are the main basis for the cost for a Phase I Environmental Site Assessment. And this essentially reflects upon the amount of time required for a proper site inspection. To illustrate, a local commercial lot may occupy no more than a couple of hours of Phase 1 ESA site inspection time. Whereas a remote factory can take a full day for an environmental professional to inspect per the All Appropriate Inquiries Phase 1 Environmental standard.
Research Time Affects Phase 1 Environmental Cost
Although the location and size of a property strongly relate to the overall Phase 1 Environmental Site Assessment cost, the research time factors in as well. This is because some lots require more research than others at local building departments and environmental agencies. And some facilities generate more environmental compliance records to review, than others. For example, car dealerships can require multiple days to audit hazardous waste disposal documentaion, compared to a dental or medical office.
Supplemental & Project Specific Criteria
Lastly, other complexities and special requirements also weigh in on Phase I ESA pricing. For instance, some organizations require specific reporting elements above the ASTM Standard. This is usually a requirement for developers engaging in special development projects. Additional special requirements exist for essential facilities such as schools, hospitals, and government recreational centers.
Price Ranges to Expect in the Year 2021
A Phase I Environmental cost is variable depending on the area and characteristics of a property. Thus, it is not recommended to solely rely on these approximate price ranges. The information below is merely to reference as a tool for learning. To learn how much a Phase I ESA will actually cost on your property, call Geo Forward at (888) 930-6604 for a site-specific proposal.
- A small sized typical commercial lot in the Year 2021 may range between about:
- $2,000 and $3,000
- A medium to large-sized industrial lot (<1 acre) in the Year 2021 may range between about:
- $2,500 and $4,500
- A large scale industrial facility (1 to 5 acres) in the Year 2021 may range between about:
- $4,500 and $6,500
- A large-sized rural property (>5 acres) in the Year 2021 may range between about:
- $3,500 and $4,500
As years go on, so does the cost to perform a Phase I Environmental Site Assessment. Factors of price changes over time are the result of changing ASTM standards, technology, labor and employment costs, industry demand, and more. Moreover, as environmental laws strengthen over time, the necessity for a proper Phase 1 ESA becomes similarly vital.
Suspiciously Low Phase 1 Environmental Cost – Watch Out!
Whether buying, selling or applying for a loan, Clients tend to be curious about variable pricing, and the comparisons to quality of work. A low-cost or cheap Phase 1 Environmental Site Assessment generally entails small budget restrictions and is subject to short cuts. Thus, suspiciously low-cost assessments usually perform below the professional standard of care. Under review, the lowest Phase I Environmental Report cost will typically have significant errors and data gaps. And as history has shown, this can result in heavy lawsuits, unforeseeable remediation, costly agency fees, and possible forfeiture.
Earlier this year, geologists were hired to investigate an industrial property, where a major error was discovered in a prior Phase 1 ESA by a different company. There was no surprise to learn the report was sold at a low-cost. The report completely missed a gas station on the lot for over 10 years and didn’t mention the existing underground tank. Other errors and omissions were also found. This disqualified the report from the CERCLA Innocent Landowner Liability Protection policy. The buyer was misled by the conclusions of the lower Phase I Environmental Report cost. Consequently, the buyer already purchased the property with a massive amount of liability.
Numerous cases like this arise each week. And they consequently link back to going cheap on the Phase 1 ESA process. For every three price quotes, Clients might find one for about 30% less than the others. This should raise a red flag. Consumers must know that it can actually cost hundreds to thousands above the lowest bidder’s price, just to make a proper Phase 1 Environmental Site Assessment.
Agency File Review Fees
Another factor that affects the average Phase 1 Environmental Report cost is the ever-changing municipality fee structure for government file reviews. Some local agencies (examples below) charge fees for file recovery and review. Additional fees typically apply for copying, printing and binding.
- Los Angeles Fire Department
- Riverside County Department of Environmental Health
- San Bernardino County Fire
- Alameda County Environmental Health
Most State agencies (examples below) typically don’t charge for file recovery. However, copy and printing fees usually apply.
- Pennsylvania Department of Environmental Protection
- Florida Department of Environmental Protection
- Minnesota Pollution Control Agency
- Texas Commission on Environmental Quality
- California Regional Water Quality Control Board
The environmental liabilities, damages, and attorney fees that come with a faulty Phase 1 ESA aren’t cheap! And since everyone’s got a lawyer on speed dial these days, it’s best to do the job right the first time, with a proper Phase I Environmental Report. In fact, the industry’s best practice standards advise researching companies before opting for the lowest cost. Although one may be faced with a strict budget, it is generally best to avoid the suspiciously low Phase I Environmental Report cost. Additionally, Geo Forward recommends confirming that a professional geologist or engineer, with a clear license to practice, is in charge of the work to be done.
Forward-Thinking Geologists, Engineers & Contractors!