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Part 2: Ecological and Environmental Considerations for Cost Estimating Development Projects.

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Presentation on theme: "Part 2: Ecological and Environmental Considerations for Cost Estimating Development Projects."— Presentation transcript:

1 Part 2: Ecological and Environmental Considerations for Cost Estimating Development Projects

2 Environmental Considerations in Property Development Contamination – What Is It? Identification of Contamination –How and When is this Done? So I have a problem – What Now? –Nature and Extent of Contamination How much will it cost to fix it?

3 Contamination 101 A contaminant is a substance that negatively affects human health or the environment Contaminants are regulated by the Environmental Protection Agency (EPA) or Florida Department of Environmental Protection (FDEP) Cleanup levels are assigned to each contaminant based on their risk to receptors (e.g., humans, aquatic and terrestrial species) Cleanup levels are often in the part per million (ppm) or part per billion (ppb) range One ppm equals…. –One drop of gasoline in an auto gas tank –One minute in 2 years –One cent in $10,000 –One inch in 16 miles

4 How Clean Is Clean? One part per billion equals… –one 4-inch hamburger in a chain of hamburgers circling the earth at the equator 2.5 times –one silver dollar in a roll of silver dollars stretching from Detroit, Michigan to Salt Lake City, Utah –one kernel of corn in a 45-foot high, 16-foot diameter silo –one sheet in a roll of toilet paper stretching from New York to London –one second of time in 32 years Some contaminants (e.g. benzene) have to be cleaned up to one ppb It’s not easy, and it’s not cheap

5 When and How Is Contamination Identified? Best Case Scenario: Prior to Property Acquisition Phase I Environmental Assessment per ASTM E –Chain of Title (prior ownership) –Records Review (prior use) –Interviews with Knowledgeable Person(s) –Site Inspection –Does not involve sampling – Phase II Environmental Assessment –Qualitative study (yes/no) –Soil, sediment, groundwater sampling –Samples taken in areas of potential impact

6 Red Flag Sites Former shooting/bombing ranges Gas stations/fuel terminals Dry cleaners Manufacturing plants: –Heavy machinery –Electronics manufacturing –Nuclear missile manufacturing Military bases Airports Future Orlando Performing Arts Center Disposal sites –Power Equipment –Drum Disposal Areas

7 More $ampling Remedial Investigation – define nature and extent –Can range in cost from the thousands to millions of dollars –Always better is someone else is paying for it

8 Once Contamination is Defined Remedial Alternatives Analysis and Design –Engineers design cleanup methods taking into account cost, schedule, ease of implementation, effectiveness Soil – excavate, vapor extraction, bioremediation Groundwater – air sparge, bioremediation, pump & treat,

9 Once a Remedy is Selected Remedial Action Implementation Operation and Maintenance (O&M)

10 Some War Stories – Property Development A Phase I ESA (by others) gone bad –“redneck recycling” Performed assessment and source removal of approximately 16,000 tons of soils impacted with Dioxin, PCBs, Lead, and Arsenic Activities included excavation, onsite soil treatment, loadout, and transportation & disposal $1.8M Project

11 Restoration of a 2,000-acre site - Orlando Pershing Landfill 1 Launch Test Area

12 Another Phase I ESA gone bad Remediation of Former Trap and Skeet Range

13 Estimating the Cost of Environmental Liabilities High-level (programmatic phase) – RACER Overview –Nature and extent must be defined –Highly contingent upon defined nature and extent of contamination –Great for budgeting – not for bidding Detailed Cost Estimating – supported by hard bid –Excel –Timberline –Appropriate for hard bid projects Both methodologies can be used –Vet cleanup technologies with RACER, prepare hard bid of selected remedy

14 What is RACER? Remedial Action Cost Engineering and Requirements (RACER): a parametric and integrated cost estimating software developed specifically for environmental investigation and cleanup projects. A commercial, off-the-shelf, Windows-based system that is adaptable and scalable to any size project or portfolio. A validated and accredited system, RACER provides credible, auditable, and defensible budget-level estimates.

15 What Media Does RACER Address? RACER addresses all media of concern: –Soil –Sediment –Groundwater –Surface Water –Sludge –Building Materials –Ambient/Indoor Air –Free Product

16 What Regulatory Programs Does RACER Cover? CERCLA/Superfund RCRA Corrective Action State Groundwater Protection Programs State Voluntary Cleanup Programs Underground Storage Tank Programs Radioactive/Nuclear Facility D&D Abandoned Mine Lands Programs Military Munitions/Unexploded Ordnance Programs Non-U.S. Cleanup Programs

17 What Lifecycle Stages Does RACER Address? RACER estimates costs for all lifecycle stages of contaminated site management. –Pre-study –Study –Removal/Interim Actions –Design –Construction/Implementation –Operation & Maintenance –Long-term Monitoring –Site Closeout

18 What Makes RACER Unique? RACER uses a ‘parametric’ estimating methodology –Input Parameters + Logic = Required Items –Input Parameters + Algorithms = Quantities

19 Who Uses RACER? AECOM Corporations Engineering/Consulting Firms State Environmental Regulators Law Firms Insurance Underwriters Government Agencies

20 How Does RACER Organize Estimates? RACER has a 4-level hierarchy to organize estimates –Estimator sets up folder, project, site, and phase levels in RACER hierarchy. Hierarchy provides flexibility to organize estimates as needed

21 Are RACER Estimates Location Specific? RACER adjusts national-average prices for materials, labor, equipment, and subcontracted services based on the project site’s state/country and city. Location modifiers based on the project site’s state/country and city

22 How Does RACER Estimate Costs? RACER uses high-level parameters about the site, scope of work, and execution methods to estimate costs. Estimator enters parameters for each “cost model”

23 How Does RACER Estimate Costs? RACER provides flexibility to adjust parameters to suit the needs of the project and/or client. Default values can be changed as needed.

24 How Does RACER Estimate Costs? RACER identifies items required to conduct the work.

25 How Does RACER Estimate Costs? RACER uses algorithms to calculate quantities.

26 How Does RACER Estimate Costs? RACER looks up prices and adjusts for location and safety productivity.

27 How Does RACER Estimate Costs? RACER calculates total cost for each item.

28 How Does RACER Estimate Costs? RACER calculates total cost for the technology.

29 What Documentation Does RACER Provide? RACER provides comprehensive documentation for project deliverables and audit trail. –RACER includes reports designed specifically to provide a defensible record of all input parameters, assumptions, and notes used in building the estimate.

30 Does RACER Support Cash Flow Analysis? RACER provides cost-over-time reports that can be used for cash flow modeling of environmental liabilities.

31 How Often is RACER Updated? RACER is updated annually with new prices, location modifiers, escalation factors, templates, cost models, and other engineering enhancements. Estimates from prior versions can be easily upgraded to use the latest pricing data from RS Means.

32 One Thought to Remember Caveat Emptor…Let the buyer beware –A Phase I environmental assessment costs about $5,000 –Cleaning up a property where you have assumed the liability can cost hundreds of millions… –To exit slideshow and return to Web site, click “Back” arrow.


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