TetraCap™ Guaranteed Fixed Price Remediation Program
Tetra Tech’s TetraCap™ program provides a comprehensive guaranteed fixed price remediation (GFPR) solution to facilitate the transaction and financing of real estate with environmental contamination issues.
Tetra Tech has successfully completed thousands of remediation projects and performed more than $300 million in GFPR projects. Tetra Tech’s TetraCap program provides a comprehensive solution for buyers and sellers of environmentally impacted commercial and industrial real estate. It provides unique opportunities for litigation settlement and aids bankruptcy workouts. The TetraCap program is guaranteed by Tetra Tech, which is a publicly traded (NASDAQ:TTEK) multi-billion-dollar international engineering firm.
The TetraCap program transfers environmental cleanup risk away from the buyer, investors, and lenders and helps buyers obtain low-cost financing, similar to non-impacted properties. The TetraCap contract incorporates the buyer’s planned future use and redevelopment schedule and achieves regulatory closure or No Further Action (NFA) for a fixed price, guaranteed to 225 percent of the TetraCap GFPR price.
For more information, contact TetraCap@tetratech.com.
A-rated Cost Cap and PLL Insurance Program
The TetraCap program incorporates a proprietary A-rated TetraCap cost cap and pollution liability (PLL) insurance program. These environmental insurance policies include coverages for known contamination, undiscovered pre-existing contamination, regulatory re-openers, new pollution incidents, and defense and loss associated with third-party claims for bodily injury and property damage.
Suitable Sites for TetraCap GFPR
The TetraCap program applies to individual site cleanups in the United States in the $5 million to $55 million range. Environmental conditions must be well characterized, or Tetra Tech may be able to rapidly complete site characterization prior to underwriting. A remedial action plan can be in place, or Tetra Tech may develop the remedial action plan during underwriting. The program emphasizes rapid cleanup approaches tailored to the client’s redevelopment plan and schedule.
TetraCap Program Process
Tetra Tech provides an initial complimentary evaluation to determine if a site is suitable for the TetraCap program. For suitable sites, Tetra Tech will provide the client with a rough order of magnitude (ROM) estimate range at no cost. The client can then engage Tetra Tech to complete confirmation sampling, meet with the regulatory authorities, perform underwriting of the cleanup, and develop site-specific TetraCap contract, price, insurance policy indications, and endorsements. An underwriting fee will apply, depending on the extent of confirmation sampling and project complexity. The underwriting phase takes approximately nine to sixteen weeks, depending on size, complexity, and cooperation from the parties involved.