October 19

Having All of Your Bases Covered During a Phase I Assessment

When conducting a Phase I Environmental Site Assessment for a property transaction, it’s important to understand what your client wants to do with the property. A solid grasp on their project and objectives can go a long way in identifying all environmental due diligence topics that may apply. Many people don’t realize there are Out-of-Scope topics not covered by the Phase I Assessment reporting standard, and if overlooked, they could present environmental liability issues to a prospective purchaser.  These include:

 

•      Wetlands – For properties undergoing development, assessment is ESSENTIAL.  Regulated federally by the Army Corp of Engineers and by IDEM in Indiana.

•      Mold – Can pose health concerns.  No state or federal regulations on mold assessment in Indiana but guidelines are in place by several trade associations.

•      Asbestos – Can pose health concerns and can be costly to abate.  Regulated by EPA federally and IDEM in Indiana.

•      Lead Paint – Can pose health concerns and might apply to any project involving painted surfaces: multi-family residential, child care, bridge repairs, and commercial structures.  Regulations vary by project.

•      Environmental Compliance – Is the business following all federal, state, and local environmental laws and regulations?  Could be relating to permitting, reporting, waste disposal, etc.

•      Air Quality – Can pose health concerns.  In addition to vapor intrusion (covered by the Phase I standard) indoor air quality from an indoor source may be a concern.  Regulations may include OSHA, but vary by source.

 

If you are hiring an environmental consultant to conduct due diligence investigations at a commercial or industrial property, be sure to discuss your specific needs and not assume that all topics will be covered in a Phase I Assessment report.  Communication is the key to success!