I’ve volunteered to head up a American Society for Testing & Materials (ASTM) Standard committee regarding Wetland Screens. Part of the process is to explain why I think the standard is necessary. This is my attempt to explain my thoughts.
In the due diligence phase of a property transaction, assessing the buildability of a site is crucial. Wetlands can significantly impact both the size and shape of a potential development, altering the economics of a project and, in some cases, rendering the property unviable. This is especially true in industries like solar energy, where wetlands aren’t always visible—farmed wetlands, for instance, can be challenging to spot even when standing directly on them.
The Cost Dilemma of Wetland Delineation
A full wetland delineation can be a costly undertaking. When conducted during due diligence, it may reveal that a property is unsuitable for development, turning the investment into a sunk cost. This risk can deter buyers, acting as a barrier to purchasing properties where wetland status is uncertain.
By breaking wetland delineation into its components—initial Wetland Screen and subsequent Field Work—we offer buyers a pause. This allows them to consider whether to proceed with further exploration or pivot to other properties. For the savvy negotiator, potential wetlands can even be used as leverage to renegotiate who bears the cost of the fieldwork or lower the property price.
Managing Time Constraints in Due Diligence
Due diligence periods are always a race against time. Clients need to reach a “Go-No-Go” decision on purchasing quickly. By providing a Wetland Screen early in the process, we help buyers make informed decisions without immediately committing to extensive studies. At a minimum, an official report can serve as leverage to extend due diligence, allowing for additional testing without rushing.
Gnarly to Nice
Seasons Matter: Wetland Delineation Challenges in the Midwest
In the Midwest, wetlands are best delineated during the growing season, yet decisions are often needed year-round—even when snow blankets the ground. Establishing a standardized process for Wetland Screening could benefit the industry by ensuring due diligence is conducted properly, regardless of the season.
Standardization and Transferability: A Win-Win
The ASTM standard for Phase I Environmental Site Assessments (ESAs) has proven invaluable for buyers and consultants alike. It allows different consulting firms to collaborate seamlessly across regions, without needing to repeat prior work. Similarly, an ASTM-standard Wetland Screen could serve as a standardized, compartmentalized building block for any subsequent phases, regardless of who performs them. This transferability ensures consistency and efficiency for buyers, even if another firm takes over the fieldwork.
The Advantage for Buyers: Lower Costs, Greater Transparency
The establishment of a Phase I ESA standard effectively compressed prices and provided buyers with a more consistent product. The same can be true for Wetland Screens. Buyers will benefit from reduced costs and better transparency, while consultants will be driven to improve quality and efficiency.
Addressing Consulting Challenges
Training: Building the Next Generation of Experts
Training new environmental scientists, especially in wetland delineation, is an ongoing challenge. Many new graduates have no prior experience, and the learning curve is steep. By adopting a mentor-protégé model, we send two people—a seasoned expert and a new trainee—to jobs initially, which impacts margins. However, by teaching new hires to compile and review Wetland Screens, they become productive sooner, which ultimately boosts profitability by freeing up our experienced staff for more complex tasks.
Labor Shortages: Navigating the Growing Season Crunch
The Midwest’s compressed growing season creates a bottleneck, with a flood of projects needing to be completed in a limited timeframe. Labor shortages often mean turning down work, as there’s simply not enough staff to go around. A Wetland Screen standard allows us to:
-
- Begin projects with a smaller, more manageable scope.
- Utilize less experienced staff earlier in the process.
- Maximize the availability of experienced field staff during peak season.
- Position ourselves to efficiently take on full delineations when projects advance.
Client Management: Keeping Clients Close
Maintaining strong client relationships is key to success in the consulting industry. A trusted client whose footprint extends beyond your typical market can be lost if introduced to another consultant. Wetland delineations are best performed with local expertise, but no one wants to hand over their valued client to a potential competitor.
Performing Wetland Screens in areas outside our typical service region can be an effective strategy to retain clients. If a project progresses, we can choose to subcontract just the delineation phase or even take on report writing, keeping our brand visible and ensuring our clients stay within our network.
