Managing contaminated land remediation can be daunting, and it is common for developers and potential acquirers of sites to place materially significant contingency on contamination and remediation. We are aware of property managers that multiply consultant's remediation estimates by 3 times, and even up to 10 times.
There are trends in why remediation costs (and time) are underestimated and generally it is associated with a number of common factors. These include making inadequate allowance for unidentified contamination, poor procurement, underestimating the practical extents of excavation, and being over-optimistic about materials separation.
The consequences of underestimating these factors can be significant, which is why it is not uncommon for there to be disputes and legal proceedings associated with contaminated land.
In addition to the aspects ideally avoided above, we have also had good success applying techniques to minimise remediation costs to below what the market would otherwise pay, and have found this can have a materially positive influence on acquisition and project performance.
Our team has a long and relatively unique history of successfully managing these factors. Our experience includes the acquisition, delivery and when required dispute resolution for numerous major remediation projects for Lendlease, Mirvac and other entities.
We provide remediation advisory services as a function within a development / acquisition / delivery team or in a role of contaminated land consultant.