Introduction

Environmental risk assessments are a core part of responsible property development in Australia. Whether you're planning residential construction, commercial expansion, or rezoning a site, these assessments provide critical insights into contamination risks and regulatory compliance.

This article answers five commonly asked questions about environmental risk assessments in property development.

What Is an Environmental Risk Assessment?

An environmental risk assessment (ERA) evaluates the potential for environmental harm arising from existing site conditions or future development activities. For property development, it typically focuses on:

• Historical land use and contamination risk
• Potential for human health or ecological exposure
• Site suitability for proposed land use
• Regulatory obligations under local and state planning frameworks

The process includes a combination of desktop review, field investigation, laboratory testing, and risk modelling, depending on the project's complexity and risk profile.

When Is a Risk Assessment Required During Development?

Risk assessments are often required during:

• Due diligence prior to site acquisition
• Development application (DA) submissions in areas with known contamination or past industrial use
• Rezoning or change of use, especially from industrial to residential
• Planning approvals for subdivisions or infrastructure works

Local councils and the NSW EPA may request a Preliminary Site Investigation (PSI), followed by a Detailed Site Investigation (DSI) and ERA to assess the level of contamination and recommend risk mitigation strategies.

What Risks Do Environmental Assessments Identify?

Environmental risk assessments help uncover a wide range of potential hazards, such as:

• Soil and groundwater contamination (e.g. heavy metals, hydrocarbons, asbestos)
• Vapour intrusion risk into future buildings
• Proximity to contaminant sources like landfills or industrial sites
• Impact on human health or sensitive receptors (e.g. groundwater, wetlands)
• Regulatory non-compliance with EPA or planning laws

Identifying these risks early allows developers to plan around them, factor costs into budgets, or avoid unsuitable sites altogether.

How Do Risk Assessments Influence Project Outcomes?

Risk assessments directly impact key project decisions:

• Site acquisition – Investors may renegotiate or walk away based on contamination risk
• Design considerations – May require changes to building layout or excavation plans
• Remediation scope – Guides soil removal, capping, or other risk mitigation
• Timeline and cost – Helps predict potential delays and remediation expenses
• Planning approvals – A strong ERA supports faster council or EPA sign-off

In short, robust risk assessments reduce uncertainty and improve the likelihood of a smooth development process.

Who Should Conduct the Risk Assessment?

Only qualified and experienced environmental consultants should undertake ERAs. In NSW, consultants are expected to follow EPA guidelines, including:

• Contaminated Land Guidelines
• National Environment Protection Measures (NEPM)
• Risk-based framework for contaminated site assessment

Engaging the right consultants ensures the assessment is technically sound, defensible to regulators, and tailored to the specific development goals.

Reduce Risk and Build With Confidence

Environmental risk assessments are not just a tick-box requirement – they are a vital tool for informed, confident, and compliant property development. At Raw Earth Environmental, we specialise in helping developers and planners identify and mitigate risk early, so projects stay on track.

Contact us to arrange a site-specific risk assessment.