Risk is generally defined as the probability of the occurrence of an
event multiplied by the consequences, should the event occur. On
brownfield projects, key risk areas include retroactive cleanup liability,
regulatory compliance and permit approvals, and lender concerns about
return on investment. These risks can generally be classified as
inevitable, unlikely, or minimized/avoidable if managed properly.
Contamination of environmental media such as soil, groundwater and surface
water, and sediment has traditionally been the focus of environmental
assessments of properties being considered for redevelopment. Significant
costs and liabilities may also be associated with contaminated structures,
hazardous building materials, residual wastes within the building system,
and physical assets such as production equipment that is not part of the
building system. Over the years, processes to assess and clean up
contamination of environmental media have been developed. The American
Society for Testing and Materials has developed standards of practice for
screening property transactions and for conducting Phase I environmental
site assessments and Phase II environmental site investigations. Most
states have also developed programs and standards that address soil,
sediment, and groundwater cleanup. While these programs and protocols have
helped to facilitate the reuse of sites with contaminated environmental
media, they do not comprehensively address the issues associated with
wastes and contamination within the building environment. Conditions
within the building environment must also be quantified before associated
risks can be understood. The objective of this article is twofold. The
first portion examines risk areas common to most brownfield projects where
major structures are present. Next, a process of due diligence called the
Building Decommissioning Assessment (BDA) is introduced. Developed for
clients in the manufacturing sector, the BDA process defines a standard
approach for conducting appropriate inquiry into building systems prior to
redevelopment and reuse. The BDA complements, and in many cases can be
performed in conjunction with, other pre-development investigations,
including Phase I and II environmental site assessments, asbestos surveys,
mold assessments, and property condition assessments. When applied
properly, the six steps of the BDA yield information essential to
quantifying risks associated with structures at brownfield sites. The
second portion of the article examines two case studies where the BDA
process has been implemented and, as a result, has revealed previously
unknown environmental conditions, limited the liability of both the owner
and financier of the property, and helped ensure compliance with
applicable environmental programs.