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Next Generation Environmental Remediation Cost Estimating

The essential characteristics of effective environmental remediation cost estimates include reliability, understandability, predictive value and consistency.  Most organizations with environmental obligations have concerns about the effectiveness of their remediation estimates because of the need for frequent revisions and a general lack of reliability.  Cost estimating based on traditional practices has offered little insight for budgeting purposes and has not been sufficiently relevant or understandable to the many functions within the organization that rely on it.

Let's Face the Facts:  Traditional environmental remediation cost estimating has missed the mark.

State-of-the-practice remediation cost estimating uses a robust framework of generic and entity-specific engineering, accounting and economic estimating contexts and constraints. The multiple organizational goals and objectives of the estimate are clearly defined and incorporated into the selection of appropriate standards and correct practices.

And a consistent framework is used so that estimates prepared for differing purposes (settlement negotiations or recognition, valuation and reporting in annual financial statements, for example) are wholly consistent even if not numerically equivalent.

Our environmental remediation cost and decision analysis services reflect recent changes in several significant standards and recommended practices, including:

• AACE Total Cost Management Framework

• ASTM Standard Guide for Estimating Monetary Costs and Liabilities for Environmental Matters (E 2137-06)

• FASB Statement of Financial Accounting Standards No. 157, Fair Value Measurements

• GASB Statement No. 49, Pollution Remediation Obligations

• ASTM Standard Guide for Disclosure of Environmental Liabilities (E 2173-07)

• FASB Interpretation No. 47, Accounting for Conditional Asset Retirement Obligations

How We Can Help

If you have a difficult environmental remediation cost issue that cannot be solved in-house, or just want to understand what constitutes best practice in remediation cost estimating, Risk Strategics can help.  Our environmental remediation cost estimating solutions include:

• Design and execution of appropriate and cost beneficial solutions for transitioning to next generation environmental remediation cost estimating.

• Training and training materials.

• Documentation support.

• Quality assurance and review activities.

• Project and change management.

• Technical support including evaluation of current remediation cost estimating processes, scoping and documentation of necessary changes, and preparing remediation cost estimates using best practices.

• Design and execution of environmental risk mitigation, transfer, and elimination strategies.

4 Request Self Assessment Checklist

4 Submit a Request for Proposal