# Environmental & Geotechnical Due Diligence
## Environmental
A **Phase I Environmental Site Assessment (ESA)** is a records-and-inspection review for signs of contamination (past industrial use, tanks, spills). If it finds red flags, a **Phase II ESA** does actual soil/groundwater sampling. Contamination can mean costly cleanup and liability — and lenders almost always require a clean Phase I.
Also check for **wetlands** (which trigger federal/state permitting and can block development) and **floodplain** status (FEMA maps).
## Geotechnical
A **geotechnical (soils) report** tells you what you're building on: soil bearing capacity, groundwater, rock, expansive soils, and how to found the project. Bad soils can add enormous cost (deep foundations, soil removal, surcharging).
## Why do this early
These studies can **kill a deal** — which is exactly why you run them during the **refundable** due-diligence period, before your money goes hard.
**Takeaway:** Run environmental and soils studies during the refundable period — they can kill a deal.
> *Educational content — not legal, engineering, or financial advice. Requirements vary by jurisdiction; always confirm with the local authority and your professional team.*
