Podcast

In this episode, Teddy talks with a client about the open ended soil remediation process.

Questions Asked…..

1. Any extras that will make the invoice higher then the quote? 35 sec
2. What happens if job takes longer then one day? 2:15
3. What would be the additional fees if you have to come another day to finish? 4:30
4. Is there a way to cap the costs of remediation? 6:00
5. If we stop the remediation, can we finish it one year later? 7:40
6. Is the $400 NJDEP review fee in addition to the quoted price? 9:00
7. If we do not finish the job, are we still responsible for the remedial action report? 9:30

 

Transcript….

Intro: 

Welcome to Tank Talk With Teddy, a podcast talking all things related to residential oil tanks. You have questions, Teddy has answers. 

Customer: 

Hey, Teddy. How are you? 

Teddy: 

I’m good. I’m good. I got your email. So yeah, I wanted to just kind of go through that with you. Do you have a second? 

Customer: 

All right. I’m sorry. Yes, go ahead. 

Teddy: 

Okay, let me just pull that email up, and see the questions that you had. Let me see, where is that email? 

Customer: 

Yeah, so I can just walk you through it. So the first question that I have, yesterday we talked about what would happen if it goes over 20 tons and you mentioned that the variable costs will be the exportation of the contaminated soil, and the clean fill material. But I just wondered if there was anything else that will increase the cost of the quote by unit, any other variables that will make it higher, than- 

Teddy: 

Yeah. So there were three line items that we have to be concerned about if we go over 30 tons of soil. So the first one would be the waste classification sample. So that’s going to increase an additional $600. That’s what the facility charges to bring in additional soil, over 30 tons. It’s a one-time charge. So, I mean, you could go up to 500 tons and there’s no additional fees, but if it’s over 30, they will charge us that additional fee. So that’s one variable. And then the two other variables is the soil disposal at $75 a ton, and then the clean fill at $25 per ton. 

Teddy: 

So whatever that tonnage is, if it’s 40 tons, we’re going to bill you for that exact tonnage for removal and replacement. 

Customer: 

Got it. Okay. So I should say, it would be like an additional 600, so it would be like a total of 1095? 

Teddy: 

Exactly. Exactly. Yep. 

Customer: 

Okay. 

Customer: 

And so, and I noticed for example, like all of the costs of the excavator and the trucks and everything, I assume that’s for the day, right? 

Customer: 

So what happens [crosstalk 00:02:11] if you have to go to, if this takes more than one day? Would that be like an additional cost of all that? Or that’s all for the job? 

Teddy: 

No. Yeah. The open-ended contract is time and material. I could tell you that about 90% of our jobs, we finish in one day, it’s very rare that we have to return for a second day, or a third day. I mean, it does happen, but it is very unusual and we are capable of removing … and this is a question that is a good question, because there’s some companies that what they do is they mobilize with really small equipment. So they can only take out, let’s say, 30 or 40 tons of soil in a day. And then they want to charge you for a second and third day. We don’t operate like that. We’ve mobilized to your house. We have the capabilities of moving, depending on the access, anywhere between a hundred to 150 tons in one day, if we have to. 

Teddy: 

Obviously, we’re not taking that out if we don’t have to, but we have the capabilities of doing that amount of soil in one day, which is really a lot of soil. 

Customer: 

Yeah. Yeah. Okay. 

Teddy: 

Yeah. We’re not looking to milk a job and have it run into a second or third day, that’s the last thing we’re trying to do. And our guys work from basically 7:00 AM till seven, eight o’clock at night, to sun down. And a lot of companies, again, same thing, two o’clock comes around … “No, we’re eight hours, we’re leaving. We’re going to come back tomorrow.” We don’t play that game. We work until basically the facilities shutdown, which is about 4:30, five o’clock and then we could be on site for another two hours finishing up. 

Customer: 

Okay. Got it. So basically what you’re saying is that the 8500 quote is really for one day of work, for 20 tons. And then it will increase depending on the tons of soil that you take out, and the [inaudible 00:04:01], but then if it takes up to 150 tons to take out in that one day, all of our costs remain the same. 

Teddy: 

Exactly. [crosstalk 00:04:11]. The only variable that will be is the soil itself. That would be the only variable cost in that. Yeah, exactly. So, yeah. And then if it does so happen that we wind up pulling a hundred and something tons, and we have to come back to backfill or something, then there’ll be some additional fees for the equipment and the labor. 

Customer: 

And what would be those fees? 

Teddy: 

You’re looking at, again, it depends. If we’re just back filling the hole, let’s say we got all the contamination out the first day, and it winds up being a hundred and something tons, and we have to come back to backfill, well, we’re not charging you for subsurface evaluator, because he’s the guy who does all the samples. So that would have been done the first day. You would have a field foreman, an environmental technician, you would have the service truck, you’d have the excavator, those line items. 

Customer: 

Okay. Got it. So basically everything, the excavators, [inaudible 00:05:06], the field vehicle. Okay. All right. 

Teddy: 

And again, it’s very rare. I mean, and we’ll know by 11 o’clock the day we come out to do it, but typically by 11, 11:30, we know how extensive it’s going to be. Majority of the time, we get all the contamination out by noon, and then the afternoon we’re filling in the excavation. We’re done. 

Customer: 

Yeah. No, no, I get it. I’m just trying to prepare for what a worst case scenario, hopefully that doesn’t actually happen, you know? 

Teddy: 

Absolutely. I get it. 

Customer: 

So the other thing is that, in the very rare case, hopefully this doesn’t happen, that this is looking to be over a hundred tons of soil, depending on how you guys are looking at that, because we have a budget for this, right? 

Customer: 

So like, the 8500 is really just about the top of what we can actually afford to spend on this. So like, if it goes for another $2000, or something like that, I mean, that’s doable. But if he goes way above that, it will be hard for us to be able to cover that. Is there any way that we can assess the tonnage that you guys are taking in, be able to like stop at some point, if it goes beyond something that we’re able to actually cover? Or pay for? 

Teddy: 

Absolutely. Yeah. Yeah. So here’s the thing, so if you say to me, “Okay, Teddy, I got, $10,000 is the absolute max,” and let’s say that’s 40 tons of soil, whatever that calculation comes out to, which is roughly about two truckloads of soil. 

Teddy: 

So if I know that, once we get to that point on the job, let’s say I’m out there and we get the one truck out and we say, “Oh, you know what? It still looks kind of dirty.” But we make a decision together on site. Do you want to take another truckload out? And you agree because you see the soil, you smell it, the geologist on site says that we should. So we take out that second truck. But now you’re telling me, “Okay, I’m maxed out. I don’t have any more funds.” So we can sample the excavation at that point and backfill the hole, finish all the site work. 

Teddy: 

Now, even though those samples are going to have an odor to it, because obviously, I mean, unless they’re clean, and obviously we know it’s finished. But if it’s not, we could still stop the job and say, “All right, let’s take the samples anyways, and then just backfill the hole.” Let’s see what those lab results are, because even if it’s contaminated, as long as it’s under the level of acceptable limits, we can close it out. And we could absolutely stop the drop at that point. 

Teddy: 

Now, I can’t guarantee that those samples are going to be clean and you’re going to pass. 

Customer: 

Yeah. 

Teddy: 

But we can stop the job at that point. Absolutely. 

Customer: 

Yeah, exactly. So what I was wondering, because I want to get this done, but obviously I don’t want this to be like a $20,000 job, because I don’t think we can afford that. But what I would say is that I would want to be able to say, okay, if we at some point realized that it’s going to go above where I want to pay, stop it at that point, and maybe we can finish it up in a year or two years from now. Is that something that is possible? 

Teddy: 

A hundred percent. 100%. Yeah, absolutely. I mean, hopefully, again, I mean, I’ve had this happen in the past where customer tells me, “I have a limit,” and we stop and we take our samples, even though they’re dirty and they come back and they’re a pass, and they’re under the limit. And then the client’s finished, a hundred percent. So that’s capable. Now, let’s say worst case they don’t pass. Yeah, you’re not under any kind of timeframe where you have to then finish it in a certain timeframe. 

Teddy: 

You could tell me, “Hey, Teddy, I got to save up some money when I have another couple thousand dollars to complete it, I’ll let you know. And the thing is, at that point, let’s say those five or six samples comes back and only one of them is over the limits. Well, I’ll be able to come back to you and tell you, “Hey, we only have one area that we have to dig out, it’s this one sidewall. So here’s the estimate to do that, to come back.” And at least you’ll have an idea of what that additional cost is going to be, and then you can determine on when you’re going to have us come out. 

Customer: 

Yeah. That makes sense. That makes sense. Okay, great. I think … oh yeah, and the other question that I had is the 400 check to the treasurer, so that’s on top of the $500 prep fee, right? 

Teddy: 

Yes. That’s a separate check that at the end of the project, you’re going to cut a check directly to the Treasurer, state of New Jersey. You’re not going to send it to them, you’re going to give it to us. We’re going to attach it to your report, and we’re going to send that to the state once the project is a hundred percent complete. So until that report is finished and we’re a hundred percent ready to submit it, to ask them for an NFA, that check is not due. So don’t send them any money. Don’t do anything until the final report is done, and then we’ll tell you what the process is from there. 

Customer: 

Okay. So that’s actually, that’s another question. If for whatever reason, we don’t happen to finish the job this time around because it goes above with what we’re able to pay. So all have these fees around the action reports and everything, doesn’t take place, right? Because that only happens when it’s done? 

Teddy: 

Exactly. Yep. Yeah. So you can hold back that money. So, initially how it works is the 50% deposit, so we take that 50% deposit, we schedule you, we come out, we do the work. If there’s a situation where one of those samples is not clean, and you tell me, “Hey, I can’t finish this,” then yeah, you can pay the balance minus the report and reporting fees. Yeah, absolutely. 100%. 

Customer: 

Okay. That makes sense. 

Teddy: 

All right? 

Customer: 

All right, Teddy. Thank you so much for the information. I really appreciate you taking the time to walk me through this. I’m going to- [crosstalk 00:10:36]. 

Teddy:

Yeah, man. Any other questions, you let me know. I mean, we’re scheduling about a week and a half out right now. So as soon as you give us the green light, I’ll get you scheduled in right away. 

Customer: 

Okay. Sounds good. Thank you so much. 

Teddy: 

Thank you, sir. 

Customer: 

Have a good day. 

Teddy: 

You too. 

In this episode, Teddy talks with a client in regards to their soil sample that was extracted the day of the tank removal. The lab results came back over the NJDEP clean up standards.

Questions Asked…..

1. What do my soil sample results mean? (25 Seconds)
2. What type of pricing options do you offer? (1 min)
3. Can you just sample the excavation instead of remediating? (2 min)
4. Is the subsurface evaluator included in the price? (2:52)
5. If we go with open ended contract, you will just come out and start digging? (3 min)
6. How often does groundwater get contaminated? (3:30)
7. How much does it cost to investigate the soils for a fixed price? (5:30)q

In this episode, Teddy talks with a client who is representing a buyer who wants to buy a house with a leaking underground oil tank. The buyer is looking for a fixed price for the project.

Questions Asked…….

1. Do you guys offer a flat rate or fixed price for remediation? 1:25
2. How can I get a fixed price? 2:15
3. How long is the price good for? 3:15
4. Does the initial cost of $600 get credited back to my account? 3:30
5. What are the payment terms? 3:50

Speaker 1: 

Hey, sorry about that, Teddy. 

Teddy: 

Yeah, no worries. What’s going on, man? How can I help you out? 

Speaker 1: 

Well, I was referred to you by Saeed Hammond Group. 

Teddy: 

Oh, yes. Yeah. I do a lot of work with Saeed. 

Speaker 1: 

Yep. So we have a house. I have the buyer, and they have the short sale listing. And they did disclose that there was an oil tank, but they said it was empty. We went to the property, and we think that the property is basically contaminated. 

Teddy: 

What’s making you think that? Do you have any kind of lab results that were done or? 

Speaker 1: 

Yeah. Yes, we do. We do. My guy Raul, who does my oil tank sweeps and he also do the testing, it was 1,100 gallon tank. And the problem was that it was filled with water. That’s what the tank was filled with. But the soil testing came back contaminated. 

Speaker 1: 

So what we were trying to do was see who’s going to pay for the removal and for the remediation. And they had proposed that you guys do a flat rate? 

Teddy: 

Yep. Yeah. We can help you with that. So essentially, you’re trying to get the bank to pay for it, and you want to get a proposal for a fixed price? Is that kind of what you’re looking for? 

Speaker 1: 

That’s kind of what we looking for. Now, the thing about it is, the short-sale bank, they’re not going to pay for it. That’s what I’m being told. 

Teddy: 

Yeah. Usually, [crosstalk 00:01:50] as is. That’s exactly why we have this program, to be honest with you. It’s for investors. I mean, we’re very investor friendly. We came out with these programs for people that are in your exact position, because as you probably know in the industry, it’s very common to get what’s called an open-ended contract, and they could quote you at eight grand and then you buy the property and it costs you 30 or 40. So that doesn’t happen with us. 

Teddy: 

The way that it works is we charge a fee, it’s $600 to come out. We do a soil investigation that consists of us determining how deep that contamination is, how far out it traveled. We determine if groundwater is impacted. We determine if it’s under any structures, if it’s offsite, all those data points we need to gather. And then we could come back to you with a fixed price contract. That price does not fluctuate. It’s an all-inclusive contract, guaranteed, no further action letter, unlimited amount of soil that gets disposed. It’s all included in that price. So there’s no gimmicks, there’s no catches. I know there’s another company right now that’s giving a flat rate, but it only includes 20 tons. Anything over that you’re responsible. So it’s not a true fixed price. So our contract is a true fixed price. It will not fluctuate. So if the deal makes sense, and I come back to you with a quote. Hypothetically, it’s $12,000. That makes sense for your deal, you close on it. We come and do the work afterwards, and that price is not going to change. 

Speaker 1: 

Oh, okay. Okay. All right. And that price won’t change. 

Teddy: 

No, yeah, it doesn’t change. It’s a fixed number. Once I give it to you, that’s good for six months. I mean, as long as you close and get it done within six months, that number is not going to change. 

Speaker 1: 

Okay. All right. All right. So I just wanted to get a little bit of information from you. So to come out, it’s $600. 

Teddy: 

Correct. And that 600, we will apply as a credit towards your file if you decide to move forward. So 600, well, if it’s a $10,000 quote, you would only owe us 9,400 bucks. So it will get applied as a credit. 

Speaker 1: 

Okay. And do you need all monies upfront or what is the? 

Teddy: 

Well, tell me what you’re doing. So is this a flip for you? Are you going to renovate it and flip it? 

Speaker 1: 

No, this is an actual buyer, a client who’s looking to be an owner occupant. 

Teddy: 

Okay. So yeah, in that situation, yeah, the way that it works is we would get a 50% deposit before the job starts. And then after the site work is complete, we ask for the balance. Typically if you were representing a seller and you had a buyer involved and there was a closing coming up, we could arrange to get paid at closing. But in this situation, I mean, unless there’s some way you could get money put in escrow from the closing, from the seller, I mean, I don’t know how you would do it, but yeah, typically we get paid 50% up front and then the balance after the site work. 

Speaker 1: 

Okay. All right. Now, I got to figure this out because I’m trying to bring both sides together. Well, at least tell my buyer, hey, they are willing to go lower on the price. So you get in on the back end. 

Teddy: 

Well, exactly. And what we can do is [crosstalk 00:05:06] the bank. So I’ll work for you, man. We’re real investor friendly. We’re trying to make it work for everybody. And we do accept all major credit cards as payment and obviously checks and cash as well. 

Speaker 1: 

Okay. All right. Thank you. I appreciate you. I have some information to take back to her. 

Teddy: 

All right. If you have any questions or if they want to call and have any questions about the process, feel free to have them give me a call. 

Speaker 1: 

Will do. Thank you. 

Teddy: 

All right. Thanks. Bye. 

These are the questions answered in this podcast.

1. Do you remove oil tanks?
2. Do you have an approximate price?
3. I had the soil tested already, do you have to test it again for Simple Guard?
4. Can I remove the tank and sell the house with no heating source, let the buyers deal with it?
5. How much do you charge to investigate the soils around my oil tank?
6. How much is Simple Guard per month?
7. Does Simple Guard transfer to new homeowner?
8. Is there a deductible for Simple Guard if there is a claim?
9. How much to install a new above ground oil tank?

Transcript Below!

Speaker 1:
Hello?

Teddy:
Yes.

Speaker 1:
Hi. I’m sorry. I work for the council of Teaneck, not that it has anything to do with what I’m about to ask you. But somebody just called in about a permit and that transferred from down. I noticed your number. A question I have for you is do you remove oil tanks?

Teddy:
Yes, 100%. That’s what we do.

Speaker 1:
Okay. Do you have like approximate prices? Obviously I know depends on the size, but what else would be factored into that?

Teddy:
It’s really the location of the tank. So is it is an underground or above ground, the tank?

Speaker 1:
Underground.

Teddy:
Where’s it located on the property? Is it front, back, sides?

Speaker 1:
The back, between a garage, which is separated from the house, and the back of the house.

Teddy:
Okay. What does the address? I’m going to try and look it up on Google, real quick.

Speaker 1:
Seventh Street.

Teddy:
And that’s in Teaneck?

Speaker 1:
Yeah.

Teddy:
Okay, perfect. I’m looking at the house right now. It looks like brick on the bottom and white on top?

Speaker 1:
Yes. Aluminum siding.

Teddy:
Yep. So you go down the driveway on the left. It’s in the driveway or it’s in the back of the house?

Speaker 1:
It’s in the back of the house. If you go up that driveway, toward the garage.

Teddy:
Yep.

Speaker 1:
It’s between the garage and the end of the house. In that area.

Teddy:
Okay. And was that tank ever filled in place? Or does it have oil in it?

Speaker 1:
It has oil in it. It is still being used right now.

Teddy:
And what’s the reason for removing it?

Speaker 1:
I’m trying to sell the house.

Teddy:
Okay. I have another option for you, that you may want to consider. It’d be a little bit more cost effective.

Speaker 1:
Okay.

Teddy:
We could come in there and we could probe around that tank, and if I could prove that the soil is clean, we can offer you an extended warranty that would cover you up to $150,000 in potential cleanup costs. What we’re finding is that, buyers are really loving this. It’s basically like an insurance product. It’s $59 a month and it’s transferable to the new owner.

Speaker 1:
Okay. To be honest with you, I did have the soil tested and the tank tested, back in November and it did come up clean.

Teddy:
Okay.

Speaker 1:
But you know, a lot of people, I understand would rather not have the tank underground.

Teddy:
Yeah.

Speaker 1:
And I’m just trying to find out how much it would be to remove it.

Teddy:
So the tank pull itself is about 1600 bucks, in the backyard, that’s what you’d be looking at roughly. But then you’ve got to figure, are you going to convert to gas? Are you going to put a new one above the ground? What are you going to do for a heating source?

Speaker 1:
I was going to leave it up to the new owners.

Teddy:
Yeah. The problem is you’re not going to be able to sell the property like that without a heating source, because they won’t be able to get a mortgage without a heating source.

Speaker 1:
I got you. Okay.

Teddy:
Do you know what I mean? So now you’re looking at, you could be spending close to four or five grand on the low end, between a new tank, pulling that tank. So it gets very costly, that’s why I was saying, we charge 600 to come out to sample it. We would have to do our own investigation. And once I prove that it’s clean, it’s basically 59 bucks a month. That’s very reasonable. And like I said, most buyers are okay with that because it’s basically covering them up to $150,000 in potential losses.

Speaker 1:
Okay.

Teddy:
But you’d have to come in and do your own survey?

Speaker 1:
I would, yeah. We have to use our own equipment. We charge 600 for that service, and then within four or five days, I could come out and do it, and then I could then offer you the program.

Teddy:
Okay. And that would be $59 a month? And then the new owners could have to be transferred and they could remove it?

Speaker 1:
Yeah, exactly. If they want to remove it, they can remove it. If there are any claims … Once they remove it, they hire us to remove it. If we remove it and find that there’s the leak, then they’re covered what that plan, up to 150 grand.

Speaker 1:
There’s a small deductible. If there’s a claim, it’s a $1,500 deductible and then they be covered up to 150 grand, so it’s a very extensive coverage. It’s the best type of warranty on the market right now. There are no loopholes where we don’t cover our clients. We’ve been doing these extended warranties for years. If you check us out online, you’ll see our reviews. We have over 212 Google reviews, with a 4.8 rating.

Speaker 1:
So, if you’re interested in that, I think that’s your most cost effective option. Or if you want us to pull it, we can pull it too. Like I said, you’re looking at 1600 and then roughly 2,500 to put a new tank in, if you wanted to put a new tank in.

Teddy:
I got you. Okay. Well, thank you. Let me think about it. I just want to make sure, your number is (732) 965-8035?

Speaker 1:
Yes. That’s our direct line. Yep.

Teddy:
Okay.

Speaker 1:
And your name is?

Teddy:
My name is Teddy.

Speaker 1:
Teddy? Okay. Thank you.

Teddy:
All right. You’re welcome. Thanks.

In this episode, Teddy talks with a potential real estate investor client who was referred by the City of Newark. She had her tank removed by another contractor and was not happy with how it was handled.

These are the questions answered!

1. Can you help with soil remediation?
2. Will you be able to tell if groundwater is impacted with your investigation?
3. How much of a deposit do you need for the soil investigation to determine a fixed price?
4. How fast can you schedule the investigation?
5. What happens after I sign the e-contract?

In this episode, Teddy saves a potential client $250 by doing a “virtual” oil tank sweep while on the phone. She was inquiring about her sister’s home where a potential oil tank was discovered during an appraisal. 

Questions Answered in this episode.

1. We just found a tank, can I still put my house on the market or should I wait until it’s out? 1:28
2. How much will this oil tank removal cost me? 2:30
3. If there is a leak, do you handle all the paperwork with the state? 6:25

Questions answered in this episode…

1. How much do you charge for a soil investigation with a guarantee? :53 seconds
2. Should the buyer pull the tank before closing or perform a soil investigation with a GeoProbe? 1:53
3. How quickly can you perform a soil investigation? 1:59
4. Can you do the cleanup and get paid at closing? 2:30
5. How much damage is done to the property during the soil investigation? 2:40

In the episode, Teddy talks with a client about her residential gas tank that was removed by another contractor. When the tank was removed, the contractor pressured her into signing a contract for a soil remediation. She gave him a $5,700.00 deposit. After he left her home, she called our office to get a second opinion. Since the contractor didn’t take any samples when he removed the tank, we recommended to mobilize to the site to delineate the soils to determine how bad the leak was.

During our investigation, we found ZERO contamination. We sent one sample to the lab to confirm and the sample came back ND (non-detect). Since this a residential gas tank that was previously used to fill up school buses that she use to drive, we needed to get a LSRP involved.

In this call, I gave her an update on where we stood with the project.

Questions answered in this episode…

1. What happens when the soil sample taken after the gas tank was removed comes back clean from the lab? :35 Seconds
2. What are the next steps after getting a ND reading from the lab when we have an open case number? 1:06
3. Can the previous contractor keep my $5,700 deposit? 2:50

Simple Tank was hired to remove a possible septic tank/oil tank that was discovered during the home inspection tank scan. We applied for the permits and put the project on the schedule within two weeks. The client and the realtor were very happy!

In the episode, Teddy talks with a client about what the next steps are since their oil tank failed the township inspection. Simple Tank grabbed a soil sample when the tank was removed and the results were 35,000 PPM. This is way above the cleanup standards of 5,100 PPM. We gave them some options with open ended contracts and also a fixed price cleanup contract.

Questions answered in this episode…

1. What line items are variable in the open ended soil remediation contract? 1:15
2. Can you give me a price from the one sample you took on the day you removed the tank? 3:45
3. How far do you think the contamination traveled? 5:10
4. How much should a groundwater investigation cost? 6:10
5. If the initial groundwater samples fails, will we be charged every time you return to sample? 7:25
6. What is the worst case scenario cost for the cleanup? 8:30
7. How does a soil delineation work to get a fixed cost? 9:50
8. Does the state certified subsurface evaluator work for you? 11:00
9. Does the township have to do another inspection? 12:05
10. How quickly can you get the final report that needs to be reviewed by NJDEP? 13:25
11. Can we pay at closing? 14:00
12. Is there an additional fee to pay at closing? 15:00
13. What are the odds of hitting groundwater in Metuchen? 17:20