Synergy Environmental, Inc.
Brian K. Loughnane, PG
April 20, 2016
The short answer is no. Yet it’s very common within the environmental due diligence market for certain purchasers or lenders to treat a Phase I Environmental Site Assessment (ESA) as a one unit price commodity good. To examine the differences between a commodity good and a Phase I Environmental Site Assessments let’s review the definition of both a commodity and Phase I ESA.
Wikipedia defines the term “commodity” as an economic good or service when the demand for it has no qualitative differentiation across a market. More specifically the market treats its instances as equivalent, or nearly so, with no regard to who produced them. Examples are a bushel of wheat or a dimensioned piece of lumber. Basically a purchaser of one of these items is not influenced by where it originated or who originated the item. As an example in most marketplaces no one asks “where did the wheat in the bread one eats originate?”