WIT Press

Fixed Price Cleanups As Useful Tools To Eliminate Risks In Brownfields Redevelopment

Price

Free (open access)

Paper DOI

10.2495/BF020301

Pages

Size

500 kb

Author(s)

R. Greenberg & D. Cervino

Abstract

Fixed price cleanups as useful tools to eliminate risks in brownfields redevelopment R. Greenberg & D. Cervino Environmental Waste Management Associates, LLC, Parsippany, New Jersey, USA Abstract Stringent environmental regulations that impose significant and costly requirements for the cleanup of contamination from historical operations previously created an atmosphere where developers, inventors and lenders are hesitant to involve themselves with environmentally impaired Brownfields properties. Traditional risk shifting mechanisms such as contractual indemnity and escrow provisions are being replaced or supplemented by new innovative environmental liability and Brownfields restoration insurance products. Environmental cleanup cost cap and pollution liability policies can protect developers, sellers, investors and lenders from third party claims, costs associated with addressing areas of unknown contamination discovered after closing and during development, legal defense costs, as well as cleanup costs that exceed a guaranteed cost estimate. Environmental Waste Management Associates, LLC (EWMA) has pioneered a fixed-price cleanup program known as SECUR-ITSM, backed by a combination cleanup cost cap and pollution liability insurance policy. The program is used by developers to effectively eliminate the environmental risks and unexpected cost of developing Brownfields because the insurance policy covers all risks both known and

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