In one sentence
The firm performing environmental assessments, from Phase I records reviews to Phase II sampling.
The longer version
The environmental consultant delivers the Phase I and, if recognized conditions surface, the Phase II. Their findings can add weeks and reshape a deal, which is why environmental is engaged as early as anything.
The consultant's engagement, report, and any recommended actions become tracked diligence items with real schedule impact.
Common questions
- What does an environmental consultant do for a lender?
- Performs Phase I site assessments and, when needed, Phase II sampling, and reports recognized environmental conditions that affect the collateral.
- Who engages the environmental consultant?
- Typically the lender, or the borrower with a reliance letter naming the lender, so the lender can rely on the report.
- What happens if the consultant finds an issue?
- The lender decides whether to require further testing, remediation, insurance, an indemnity or a holdback before closing.
Keep reading
- The due diligence checklist, built to be runChecklists as systems, not documents.
- The commercial loan closing processThe five stages from term sheet to funded.
- The commercial loan closing checklistWhat goes on the list and who owns each line.
- Due diligence softwareThe request list, the owners and the dates in one place.