United States
Environmental Protection
Agency
Office of Solid Waste and
Emergency Response
OS-420 (WF)
EPA 500-F-92-001
May 1992
&EPA
Controlling UST Cleanup Costs
Fact Sheet 1:
Hiring A Contractor
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 deter-
mines 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
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often give expert advice but may not be involved in day-to-
day ueld 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 qualifica-
tions 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.
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: Negotiating the Contract, Interpreting
the Bill, Managing the Process, and Understanding
Contractor Code Words. For copies of these fact sheets or
more information, contact your State Fund Administrator for
USTs and/or your State Underground Storage Tank
program.
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