A potential client approached Hanis Consulting to perform an expedited Phase II Environmental Site Assessment (ESA). The transaction was due to close in one week. The original consultant that performed the Phase I recommended that a Phase II ESA be performed at a cost of $15,000. The developer needed a second opinion due to the large price tag.
Prior to preparing a proposal for a Phase II, Hanis Consulting reviewed the Phase I report. It quickly became apparent that this $1,400 Phase I report did not meet the minimum standard for Phase I ESAs since a thorough review of the site history was not completed.
The consultant had identified a historic “printing facility” at the site and was concerned that drums of inks and solvents may have leaked and contaminated the ground. By reviewing city directories, which the consultant did not do, Hanis Consulting was able to determine that the “printing facility” was a card and gift shop. Hanis Consulting immediately recommended to the potential client to perform a new Phase I ESA for the site. The client agreed.
Since there were only a few days to complete the Phase I, the project was expedited. The cost of the Phase I was $2,000 plus expedited rush fees. Hanis Consulting ultimately determined that no recognized environmental conditions were present and that a Phase II was not necessary. The client was able to close on-time. Unfortunately, the client paid $1,400 for an improper Phase I and almost paid another $15,000 for an unnecessary Phase II.
