When it comes to land development, environmental due diligence isn’t just a box to check – it’s a crucial step that can make or break your project. At CRG Texas Environmental Services, we’ve seen how skipping or mishandling this process can lead to costly delays, legal troubles, or even abandoned deals. Developers often move quickly to secure properties, but without careful attention to environmental risks, surprises can surface that derail the entire project.
Here are the top five mistakes we see developers make during environmental due diligence – and how to avoid them.
1. Skipping the Phase I Environmental Site Assessment
Some developers assume that if the property looks fine on the surface, there’s no need for a Phase I ESA. That assumption is a mistake. A Phase I ESA provides a clear history of the property’s use, past ownership, and potential for contamination. Without it, developers risk moving forward blindly, only to discover issues later when it’s too late – or too expensive – to back out.
Tip: Always begin with a Phase I ESA. It’s your first line of defense against hidden risks.
2. Delaying Assessments Until After Closing
Another common pitfall is waiting until after closing to complete environmental assessments. By then, the buyer has already taken on liability for any contamination, making it a dangerous gamble. Developers who delay due diligence often find themselves footing the bill for remediation that could have been identified and negotiated earlier.
Tip: Complete your due diligence before finalizing the deal. Protect yourself by knowing the property’s risks upfront.
3. Underestimating Phase II and Phase III Needs
A Phase I ESA may recommend further investigation, but developers sometimes resist moving forward with Phase II or Phase III assessments due to cost concerns or tight deadlines. Unfortunately, ignoring recommendations can lead to bigger costs down the road. A leaking underground storage tank, for example, won’t stay hidden forever – and cleanup only gets more complicated (and expensive) with time.
Tip: If a Phase II or Phase III is recommended, take it seriously. It’s not just an extra step – it’s a safeguard for your investment.
4. Ignoring Local and Federal Regulations
Environmental compliance isn’t one-size-fits-all. Regulations differ between federal, state, and local levels, and failing to comply can result in violations, fines, or legal disputes. For example, petroleum storage tank regulations in Texas require specific handling, reporting, and closure procedures. Missing these details can stop a project in its tracks.
Tip: Work with an experienced consultant who understands both state and federal requirements. Compliance saves time, money, and reputation.
5. Choosing the Wrong Consultant
Not all environmental firms are the same. Some developers make the mistake of hiring the cheapest option or working with a consultant who doesn’t specialize in their type of project. The wrong partner can lead to incomplete assessments, missed risks, and poor guidance.
Tip: Partner with a trusted firm that has the right expertise and a proven track record. At CRG Texas Environmental Services, we’ve been guiding developers across Texas for more than 30 years, helping them move forward with confidence.
Final Thoughts
Environmental due diligence isn’t just about compliance – it’s about protecting your investment and ensuring your project succeeds. By avoiding these five common mistakes, developers can save time, reduce risk, and build stronger foundations for their projects.
At CRG Texas Environmental Services, we see ourselves as deal makers, not deal breakers. Our team is here to help you navigate environmental challenges, from Phase I ESAs through remediation and compliance, so you can focus on bringing your vision to life.
Ready to move forward with confidence? Contact CRG Texas Environmental Services today to schedule your environmental due diligence consultation.