We have been increasingly concerned about many Phase 1 reports that include recommendations for Phase 2 work. We therefore are offering a free training course on the purpose of a Phase 1 and how they relate to Phase 2 investigations. The purpose of this course is to clear up some of the confusion that is prevalent in this process.

It is our opinion that much of the reasoning for the necessity of the additional work is not based on specific concrete observations or other information by inspectors. This is bad enough in itself, but can become even worse if a Phase 2 is performed based on faulty Phase 1 information. The reader of a Phase 1 report should be able to determine why there is a problem, where it is and what the likely contaminant is.

As you know, a Phase 2 recommendation in a Phase 1 report is a problem for the banks, brokers, buyers and owners involved in a real estate transaction for the following reasons:

1) A Phase 2 investigation may add 4 to 6 weeks or more to the due diligence period resulting in escrow issues.

2) A Phase 2 may add significant cost ($5,000-10,000 or more) which could jeopardize the transaction.

3) If a Phase 2 is performed that is not sufficiently focused, it will not provide sufficient information to resolve the issue. 4) If a Phase 2 is performed that discovers contamination, additional investigation may be recommended leading to even further delays.