How do I check a demolition company’s records on hazardous material handling before buying?
Ask for the paperwork on every job that involved hazardous materials: pre-demolition surveys, handling plans, disposal receipts and worker training. Check that the records are complete and consistent, and that no incidents, complaints or orders are unresolved. Gaps are the warning sign.
Start with a sample of past jobs. For each, look for the survey that identified hazardous materials, the plan for handling them, who did the work and where the waste went. Disposal receipts should match the amounts and dates in the plan. Missing receipts deserve a direct question.
Next, review training and equipment. Ask which workers hold current training, how it is tracked and what protective gear and monitoring tools the company uses. Ask about any incidents, near misses, inspections or stop-work orders, and see how each was closed out.
Ask whether the company uses outside specialists, and whether they carry their own insurance. Check the company’s own insurance for pollution coverage, and have your insurance advisor review it. Because past handling can create future liability, have your lawyer advise on what you would take on in a purchase and how to protect yourself. Environmental consultants can also review the files. Ask the seller for permission before contacting regulators or former customers. Do not rely on the seller’s summary alone. Ask whether a specialist can sample several files independently and report back. A short, focused review early in the process is far cheaper than finding a gap after closing, when the file is yours.
Key takeaways
- Sample jobs and match surveys to handling plans and disposal receipts.
- Ask about incidents, orders and how each was resolved.
- Have your lawyer advise on liability before you commit.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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