LIABILITY TRANSFER IN PRACTICE
Each Active Transfer we undertake is unique to a particular site or transaction.
An escrow or trust is established to hold agreed funds for each Active Transfer. This contractually places the obligation to address the environmental liabilities and remediation of one of more sites in a specially designed and focused company. This structure protects our clients’ investment and provides complete visibility on our management of the former liability.
This approach means: ƒƒ We use our expertise to price the remediation work and anticipate variants.
ƒƒ We agree a price for the work and risk layer management.
ƒƒ Funds are placed in an escrow or trust fund which safeguards them from any future solvency issues affecting any of the contracting parties, and means that they are only used to finance work on the specific site or liabilities.
ƒƒ Payments from this fund are administered by an independent trustee approved by our client.
ƒƒ Responsibility for the management of the known and unknown environmental liabilities is taken by the specifically designed company, controlled by WSP.
ƒƒ Insurance can provide additional protection against contamination caused or exacerbated by a remediation contractor, unforeseen circumstances and third party claims.
ƒƒ Through the specifically designed company we will select and implement the most appropriate remediation solution, adapt to any changes and manage the site.
ƒƒ The ‘end point’ is agreed up front by all stakeholders and the agreement is structured to allow for future property transfer from one owner to another, including part of a site.
WSP’s environmental liability solutions programme is based on a streamlined process. It removes the guesswork from estimating reserves for environmental liabilities and it avoids multiple contracts and enables transactions to be evaluated by our experienced professionals.
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