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 of environmentally impacted commercial and industrial real estate. 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 up 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, underwritten by a Lloyds of London accredited insurer. These environmental insurance policies include coverages for cost overruns for known contamination and undiscovered pre-existing contamination. The program covers new pollution incidents, regulatory re-openers, 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 $30 million range. The property typically will be under contract for purchase, and environmental conditions must be well characterized. A remedial action plan can be in place, or Tetra Tech may develop the remedial action plan during underwriting. The program is designed for cleanups where NFA can be achieved in less than five years and works best for brownfields, voluntary cleanup programs, and other cleanups with state leads.

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. 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. The underwriting fee will depend on the extent of confirmation sampling and project complexity.