How to Estimate a Phase II Environmental Site Assessment

A Phase II Environmental Site Assessment (ESA) is the field-investigation step that follows a Phase I when recognized environmental conditions (RECs) require physical sampling to confirm or rule out contamination. Unlike a Phase I — which is a desk study with site walk and runs $1,500–$4,500 — a Phase II involves drilling, sampling, lab analysis, and reporting, and typically lands $6,000–$45,000+ depending on scope. This guide walks environmental contractors and consultants through how to bid a Phase II accurately, where the variability lives, and the line items most often missed when scope is rushed.

The cost ranges below are typical 2026 US national-average pricing. Apply local labor rates, drilling subcontractor pricing, and lab pricing for project-specific calibration.

Phase II ESA Cost Per Project (2026)

Project Scope Typical Cost Notes
Limited Phase II (1–3 borings, soil only) $4,500 – $9,000 Spot check at known/suspected REC; minimal lab
Standard Phase II (4–8 borings, soil + GW) $9,000 – $20,000 Typical commercial real estate due-diligence Phase II
Expanded Phase II (8–15 borings, multi-media) $18,000 – $40,000 Larger site, multiple RECs, soil + GW + soil gas
Industrial / brownfield Phase II $35,000 – $120,000+ Former industrial, multiple historical operations, regulatory file
Remediation-track Phase II (state program) $25,000 – $90,000+ VRP / brownfield assessment with regulator coordination

The variability is driven mainly by boring count, sampling depth, analyte list, and whether monitoring wells are installed. The fastest way to be wrong on a Phase II bid is to price by project size or square footage instead of by the field program defined in the work plan.

The Cost Stack on a Phase II Estimate

Environmental firms price Phase II work the way Matt's firm at BH&M Environmental does — labor positions × hours, plus material/lab cost, plus variables for unknowns underground. Typical breakdown on a standard $15K Phase II:

Cost Bucket Typical % of Total What's Inside
Labor — environmental specialist 20–30% Field oversight, sample collection, sample chain-of-custody
Labor — project manager + senior review 10–18% Work plan, regulator coordination, report review, sign-off
Drilling subcontractor 20–30% Direct-push, hollow-stem auger, monitoring well install
Lab analysis 15–25% VOCs, SVOCs, RCRA metals, TPH, PFAS depending on scope
Equipment, mobilization, supplies 4–8% PID, water-quality meter, sample jars, decon supplies
Reporting 10–15% Lab data review, narrative, figures, regulatory submission
Markup + variables 10–18% Materials markup (typically 15–20%), contingency for unknowns

Labor and drilling combined typically run 50–60% of the total project. Lab cost is the largest single material line and the line most likely to overrun if the analyte list expands during fieldwork.

How to Build the Estimate Step by Step

1. Lock the work plan before pricing

Phase II costs are driven by the field program — boring count, depth, sample matrix, analyte list. If the work plan isn't finalized, the bid is unreliable. For RFPs that ask for a price against a draft scope, carry assumptions as explicit exclusions and price three scenarios (limited, standard, expanded) so the client can match the program to the budget.

2. Price labor by position × hours, not lump sum

Environmental firms don't bill by the boring. They bill by hour times labor position (project manager, senior environmental specialist, field technician, geologist, engineer). Build the bid as a labor-position-hour table for transparency and to match how T&M and not-to-exceed contracts actually get billed. Hard-dollar lump sums roll up the same numbers but with a different export format.

3. Get drilling sub pricing in writing

Drilling sub rates vary 30–50% across the country and 10–20% within the same metro depending on rig availability. Get the drilling sub's quote in writing before bidding. Verify (a) day rate vs. per-foot pricing, (b) mobilization cost (often $500–$2,000 separate from the day rate), (c) decontamination cost between borings, (d) standby time policy if the field schedule slips.

4. Price lab work from the analyte list

Standard Phase II analytes are VOCs (~$80–$150/sample), SVOCs (~$150–$280), RCRA-8 metals (~$60–$120), TPH (~$80–$150). Add PFAS (~$300–$500/sample) if the site has any history suggesting AFFF, plating, or specific industrial operations. Most firms get caught by lab cost when the regulator requires PFAS that wasn't in the original work plan.

5. Carry variables explicitly

Underground unknowns — fill material that requires deeper borings, unexpected groundwater depth requiring additional well casings, encountering existing utilities — should be priced as explicit variables in the contract. Either as a not-to-exceed adder or as itemized unit rates ("if monitoring well casing requires extension beyond 25 ft, additional cost is $X per foot"). Don't bury variables in lump-sum pricing on environmental work; clients always come back asking what's covered.

The Most Common Misses on Phase II Bids

  • IDW (investigation-derived waste) disposal. Soil cuttings, purge water, and decon water from drilling have to be characterized and disposed. $400–$2,500 per project typical; $5,000+ if hazardous classification is required.
  • Utility clearance and locating. Required before any drilling. Public locate (811) is free; private utility locate runs $400–$1,200 per site. Forgotten on rush bids.
  • Health & safety plan and OSHA-required PPE. Required by 29 CFR 1910.120 for any potentially hazardous site. $300–$800 of HASP prep + $100–$300/day of PPE on hazardous sites.
  • Regulator coordination time. If the site is in a state voluntary cleanup program or brownfield assessment, regulator review of work plan and lab data typically requires 4–10 hours of senior-level time not in field labor. Often forgotten.
  • Schedule contingency for lab turnaround. Standard lab TAT is 10–15 business days. Rush TAT (3–5 days) adds 50–100% to lab cost. If the client needs a 4-week Phase II–to–report turnaround, you're paying rush TAT — price it in.
  • Repeat sampling or step-out borings. If initial samples confirm contamination, the work plan often expands to delineate extent. Either carry as an option in the original bid or price clearly as a change-order trigger.

Hard-Dollar vs. Not-to-Exceed vs. T&M on Phase II Work

Three common contract structures on Phase II work, each with different risk distribution:

  • Hard-dollar lump sum — fixed price for the entire scope. Best when work plan is locked, site conditions are well-understood, and the analyte list is final. Risk sits with the environmental firm. Typical when the buyer is a real estate broker or lender who needs a known number for due diligence.
  • Not-to-exceed (NTE) — capped price, but bills only for actual hours and costs incurred. Best when scope is mostly defined but variables exist. Common on commercial due-diligence Phase IIs where the buyer wants a ceiling but recognizes some uncertainty.
  • Time and material (T&M) — billed at labor positions × hours plus pass-through materials. Best when scope is undefined or evolving (e.g., investigation that may expand based on initial findings). Most common with industrial, brownfield, and regulator-driven assessments.

The wrong contract structure for the scope is a common cause of dispute on environmental work. A Phase II at an industrial site with 60+ years of operating history almost never fits a hard-dollar contract — too many unknowns. Push back on the contract structure during scope discussions, not after the work plan is signed.

Want a Phase II bid in 5 minutes from your past projects?

Environmental firms bid the same labor-position-rate model project after project. Your last 3–5 Phase II estimates contain your firm's labor rates by position, your typical drilling sub markups, your lab cost assumptions, and your standard variables/exclusions language. BidFlow reads those past estimates and builds a private cost library calibrated to your firm — so your next Phase II bid starts from your real data, not a generic environmental cost guide.

Upload 3–5 of your past Phase II estimates — BidFlow extracts your labor-position-rate structure in 5 minutes, in the format your firm already uses (PDF lump-sum proposals, Excel T&M spreadsheets, or both). 14-day free trial. $99/month flat per company.

FAQs

How much does a Phase II Environmental Site Assessment cost in 2026?

Standard commercial-due-diligence Phase IIs typically run $9,000–$20,000. Limited Phase IIs (1–3 borings) run $4,500–$9,000. Expanded multi-media Phase IIs run $18,000–$40,000. Industrial and brownfield Phase IIs run $35,000–$120,000+. The variability is driven primarily by boring count and analyte list, not site square footage.

What's the difference between Phase I and Phase II ESA pricing?

A Phase I is a non-intrusive desk study with site walk; runs $1,500–$4,500. A Phase II involves physical sampling — drilling, soil/groundwater/soil-gas collection, lab analysis, and reporting. Phase II pricing is 4–10× Phase I pricing because of drilling sub cost, lab cost, and field labor.

Why do environmental firms bid by labor position × hours instead of lump sum?

Because labor cost is the largest cost driver and labor varies by position. A senior project manager bills different hours and different rates than a field technician. The labor-position model lets the firm price each role precisely, gives the client transparency on what's being billed, and matches how T&M and not-to-exceed contracts get reconciled. Lump-sum pricing rolls up the same labor-position math behind a fixed total.

Should Phase II include monitoring wells?

Depends on the scope. If groundwater sampling is needed, monitoring wells are typically required (temporary well points work for some shallow scenarios but most regulators require permanent wells for VRP/brownfield work). Monitoring well install runs $1,200–$3,000 per well; typical Phase II has 2–6 wells. Verify well requirements with the regulator (or the state guidance) before pricing.

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