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Background
Fact Sheet 1 was developed by the Environmental Protection Agency’s
Office of Underground Storage Tanks in conjunction with State Fund Administrators.
It is one of a series; the others are:
Facing the Situation
When you’re talking about success in business, you’re talking about
solid, common sense. The same is true when you’re facing a petroleum or hazardous
substance spill. You need to trust that common sense, gather some background information,
and find the people to do the best job of cleaning it up.
Learn your State Underground Storage Tank (UST) program regulations
to make sure you abide by your State’s laws about cleaning up leaks from USTs.
Most States have a fund to help underground storage tank owners
pay for cleaning up tank leaks. The fund is generally managed by a State Fund Administrator.
Check with your State Fund Administrator to see if you are eligible to receive these
funds and to learn about other requirements you need to fulfill before you hire
a contractor.
As an underground storage tank owner who needs a spill cleaned
up, you need to have a business plan that includes finding contractors to diagnose
and complete the work. It involves more than picking a company from the phone book.
Or finding one that offers a low price. As with other vendors you deal with, the
contractor offering the lowest price for a site assessment and cleanup doesn’t always
provide the best service.
Knowing the Jobs
Contractors often put in bids for the following two types of jobs:
- Site Assessment Jobs, in which the contractor determines the extent of the contamination, and
- Cleanup Management Jobs, in which the contractor actually cleans up the spill.
Once your contractor has completed a site assessment, you will
have sufficient data to obtain bids for the cleanup. You can have the same contractor
do both jobs or separate contractors for each job. Either way, you want to be sure
that you are paying appropriate fees for adequate services.
Knowing the Players
In these fact sheets, the term "contractor" refers to
contractors and consultants. Consultants often give expert advice but may not be
involved in day-to-day field work. Contractors usually fall into one of two categories
— full-service contractors and specialty contractors.
Full-service contractors have the capability to perform site assessment
and cleanup work without obtaining the services of another contractor. Specialty
contractors are qualified to perform only certain aspects of a site assessment or
cleanup. A specialty contractor generally works on limited activities, like installing
wells or designing a cleanup plan. Subcontractors are either full-service or specialty
contractors that perform services at a site under the direction of another contractor
— the prime contractor. As an owner or operator, you would probably interact only
with the prime contractor.
Hiring the Best People
Keep the following tips in mind when you’re shopping around for
a contractor to provide the most effective and economical site assessment and cleanup
available.
- Ask Around: It’s worth your while to ask
other owners and operators, or your local association, about contractors they’ve
hired. Check with your State UST program to see if there is a list of certified
contractors you can choose from.
- Get Written Bids: Have at least three contractors
write estimates, also called bids. In their bids, contractors must list the
tasks they will perform and how they will perform them. Request the same information
from all contractors so you can compare bids.
- List Charges: Get an explanation of the
rates charged. Know what you’re paying for. Get a description of the tasks and
a list of the junior-, mid-, and senior-level staff that will be performing
each task. This is a good way to match rates to services. If you’re not comfortable
with any match-ups, ask the contractor for an explanation.
- Compare Answers: Weigh the strengths and
weaknesses of each contractor against the others; decide on one, or if you don’t
think any of them can do your job, widen your search. You need to hire someone
who will meet your needs.
- Define Roles: Ask that the bid include
the qualifications and experience of the people who will be doing the work on
your site. Whether you need to hire someone to assess your site or to clean
up the spill, this information will help you determine the company’s qualifications.
- Look Closely: Evaluate the contractor’s
credentials and experience. Does the company’s experience match your needs?
Is the contractor qualified to do the job? Have they done this work before?
How often? Are they planning on using subcontractors? How do they justify their
rates?
- Count Heads: Know in advance any planned
use of subcontractors. Make sure the contract bid includes all subcontractor
fees.
- Ask Questions: Clear understanding — about
even the most minor details — is crucial to precise negotiations.
- Get References: Have them include a list
of references, especially those from State contracts, and ask the State about
their performance on these contracts. Are they familiar with State UST regulations
and criteria for payment from the State Fund?
- Read Fine Print: Understand the payment
terms, including interest charges on outstanding bills.
- Sign Carefully: Don’t get locked into an
overestimated bid. And don’t automatically choose the lowest bidder.
Double-Check
Before you commit to any contracts, have a clear understanding
of the required work. Understand how long it will take and how much it will cost.
Double-check, in writing, the following items with the contractor:
- Price
- Project timetable
- Terms and conditions of payment
- Cited contractor’s experience/capability
- Explanation and purpose of technical work
And Remember:
The sooner a spill is cleaned up, the better. The longer you wait,
the more the damage will spread and the more the cleanup will cost.