Environmental remediation costs: Estimating and funding cleanup

Factors affecting environmental remediation costs

Limited availability of information

Preliminary estimates of environmental remediation costs are based on limited information provided by remedial investigations (RIs) and associated feasibility studies. While the primary objective of an RI is to determine the potential risk of contaminants, the feasibility studies are conducted to select the right remediation strategy for the site.

However, conventional sampling and analysis methods can not estimate the full extent of the contamination. The number of samples collected and analyzed is often limited by the costs of standard fixed-laboratory analyses. This constraint on sample numbers affects the accuracy of conclusions regarding the extent of contamination at the site. These conclusions, in turn, affect forecasting quantities, such as estimated soil vapor extraction flow rates and groundwater pumping rates, used to evaluate appropriate remediation methods.

Uncertain scope of work

Inexperienced environmental consultants

The experience of environmental consultants involved in the project is one of the key factors that influence the accuracy of environmental remediation cost estimates. Each contamination site is unique and demands customized estimates that consider a range of potential scenarios and associated costs. Inexperienced environmental consultants and engineers might conduct Environmental Site Assessments with inadequate sampling and fail to identify underground anomalies that will affect the scope of the redevelopment project. Apart from projecting the costs and expenses of RIs, feasibility studies and remedial actions, consultants need to factor in additional costs or indirect costs associated with project management, remedial design, construction management and technical support when estimating the overall budget of the project. An inexperienced estimator might lack the breadth of knowledge to accurately account for this wide array of costs.

Collaboration with our clients to create the best remedial action options for a site is what we feel separates Fehr Graham from other firms. For example, if there is a closed environmental site with continuing obligations, an inexperienced consultant may suggest additional site investigation activities. At Fehr Graham, unless we observe something that warrants additional investigation, we won't open a new environmental case. Instead, we will work with the client and the regulatory agency to redevelop the site while staying within the boundaries of the state closure documentation. This forward thinking coupled with historical knowledge avoids unnecessary site investigation, saves the client money and expedites redevelopment.

Environmental consultants and engineers play a role beyond estimating remediation costs of a redevelopment project. Thorough estimates can also help developers fund their remediation projects through grants, revolving loans and tax incentives. Developers can also benefit from additional tax credits that are available for projects that meet or exceed sustainable design standards. Teaming with the right experts can help developers secure funding solutions while reducing the risks of cost overruns and improving the appeal of redevelopment projects to lenders.

Ensuring accurate estimates of environmental remediation costs