The following section will outline the key consulting services, pricing strategies, distribution methods and proposed promotional strategy of Terra Engineering. Also included is the survival strategy for the company.

4.1 Key Consulting Services

Terra Engineering will provide a diverse set of specialized environmental consulting services to its market (s). The set of services that will be provided are among the industry's norm. Below is a list of the business' key environmental consulting services.

  1. Environmental Site Assessment;
  2. Strategic Planning and Policy Development;
  3. Project Design and Management;3
  4. Resource Design and Management;
  5. Environmental Monitoring and Reporting;
  6. Peer Review Services for Third Party Issues or Proposed Developments;
  7. Site Restoration; and
  8. Liaison Services to Territorial communities

1. Environmental Site Assessments

Environmental Site Assessment (ESA) is the assessment of a property in accordance with Canadian Standards Association requirements. Depending on the jurisdiction, either provincial or federal this work must be completed within standards. In general the CSA standard CSA Z768-01 for ESA Phase I and the CSA Z769-00 for ESA Phase II's will be met for work completed for federal clients. For those clients having to meet Ontario provincial standards the Ministry of Environments, Guidelines for Use on Contaminated Sites in Ontario, Revised Sept 2006 with its accompanying appendices will be complied with. This work will be completed for Territorial clients.

With the increased economic strength of First Nation communities rising, there is a potential to “buy” someone else's problem. This is a strong motivator for completing an ESA.

Environmental permitting can be as simple as completing a paper to identify what the environmental impacts are going to be and how these impacts will be mitigated. In can also involve a full scale panel review of a project within either the provincial or federal regime. The intent is to get permits to complete a project. Both Territorial communities and those companies intending to develop a project with impacts to Territorial communities will need to be able to work within the environmental regimes to ensure their projects are permitted.

2. Strategic Planning and Policy Development

All Territorial communities have a plan to succeed. Where those plans have their roots will define when and if they will in fact succeed. It is not Terra Engineering's intention to develop plans for the future of Territorial governments and communities. It is Terra Engineering's intention to offer the technical skills of today to those communities with a vision and a desire to succeed. Terra Engineering will work with clients with a “vision” and help to develop this vision. Strategic planning for Territorial communities cannot be done by those communities not from or familiar with Territorial governments and communities. There are too many communication gaps as well as a deeper understanding of those communities required to be overcome in the short time frame and pace with which projects proceed in today's reality.

Policy development speaks to the legislative gaps which exist between the federal and provincial legislative regimes. There are constitutional issues and genuine problems that Territorial communities need to guard against. The irony is with an increasingly rigid provincial environmental regime, waste disposal on Territorial lands will become extremely lucrative. Territorial communities will need to be able to prevent this activity. They will need to be able to do this in the face of legislative voids as well as finances, the challenges are great but not insurmountable. Terra Engineering will be able to help in this regard.

3. Project Design and Management

This is relatively straight forward. Schools, housing, infrastructure, planning, economic development, each of these will involve being versed in the technical capacity of design and management. Further, project management for Territorial communities will need to understand certain funding program and criteria. They will also need to understand project management capacity of the Territorial community to ensure projects serve their intended purpose and are developed within the identified budget.

4. Resource Design and Reporting

All Territorial lands have resources. They need to understand what those resources mean to their members and understand how those resources flow to meet the needs of people. They need to have the confidence to choose what to do with those resources, how to manage them and they need to be confident in their “ways” to know what they are correct in how resources are used to satisfy the needs of today's generation with a mind for the needs of those yet to come. Technology has a mind-set, and with Territorial governments that mind sets looks far into the future. Communities will need a consultant who shares that perspective.

5. Environmental Monitoring and Reporting

Landfills, environmental restoration and decommissioning programs all require a certain degree of monitoring capacity. These monitoring activities involve submitting samples, soil, water or air for analysis to ensure there are no contaminants in addition to submitting a report. Further, Territorial communities will need to establish a waste management regime. This regime will be necessary to ensure that waste generated off reserve does not end up in their landfills.

6. Peer Review Services for Third Party Issues of Proposed Developments

Terra Engineering will give Territorial communities a technical option for reviewing the work of others. Engineering can be a language unto itself. The ability to speak that language takes a number of years to master. It is understandable that communities get overwhelmed with some of the technical reports as well as what they mean. There is a need to provide communities with an informed voice.

Terra Engineering will operate this aspect of the business on a retainer basis. If a community requests Terra Engineering to represent the interest of the community, a fee schedule will be worked out with the client.

7. Site Restoration

Site restoration in its simplest form is taking a detrimentally impacted site and restoring it to what the province or the federal government would deem to be clean. It is heavily legislated and can involve working with a number of ministries or departments. In the end, the client is looking for a piece of land that will not present an environmental liability to the client.

8. Liaison Services to Territorial Governments

There are a number of industries which are striving to communicate with the Territorial communities. Whether it is a result of environmental assessment processes, gaining access to resources on community lands, resource based industries and companies will require an ability to communicate with Territorial governments. Terra Engineering will assist those industries and companies in this regard provided they are willing to follow a protocol of involvement.

4.2 Key Consulting Services

Terra Engineering will utilize pricing strategies that will allow for the opportunity to gain small to medium sized projects designed to build reputation. The pricing strategy that will be utilized by this company is multiplier based pricing. The pricing strategy is one that is used widely throughout the industry and is accepted by its market.

The following price breakdown will be the client charge out rate, obviously it will depend on the nature of the work required:

  Hourly Rate
Project Management $85 to $120
Engineering $85 to $120
Field Technician $65 to $85
Administrative $45
Printing $45

This pricing strategy is very competitive compared to its mainstream and more importantly its Territorial competition. This is based on a multiplier of 2.5. The salaried or wage rate will be as follows:

Project Management $34 to $48
Engineering $34 to $ 48
Field Technician $26 to $34
Administrative $18
Printing $18

Travel costs and disbursement will be billed as extra. These costs will include a 5% administrative charge.

The following table illustrates the average price of small, medium and large projects to be completed by Terra Engineering.

Average Project Size Per Consulting Service
Table #1

Service Project Size
Environmental Site Assessment Small - $2,500 to $5,000
Medium - $5,000 to $15,000
Large - $15,000 and up
Strategic Planning and Policy Development

Small - $20,000 to $30,000
Medium - $30,000 to $40,000
Large - $40,000 and up

Project Design and Management

Small - $5,000 to $15,000
Medium - $15,000 to $30,000
Large - $30,000 and up

Resource Design and Reporting Small - $5,000 to $10,000
Medium - $10,000 to $20,000
Large - $20,000 and up
Environmental Monitoring and Reporting Small - $5,000 to $15,000
Medium - $15,000 to $25,000
Large - $25,000 and up
Peer Review Services Small - $1,000 to $10,000
Medium - $10,000 to $20,000
Large - $20,000 and up
Site Restoration

Small - $10,000 to $20,000
Medium - $20,000 to $40,000
Large - $40,000 and up

Liaison Services Small - $10,000 to $20,000
Medium - $20,000 to $40,000
Large - $40,000 and up

The above price ranges includes disbursements and expenses with Terra Engineering's charge out. Each of the above projects will differ with respect to the intensity of “knowledge based” advice. Those services requiring subcontractors such as drilling, excavation, and analytical laboratory work will impact the environmental assessment and site restoration activities the most.

Average Project Size Per Consulting Service
Table #2

Service Project Size
Environmental Site Assessment Small - $1,000 to $3,000
Medium - $3,000 to $10,000
Large - >$10,000
Strategic Planning and Policy Development

Small - $15,000 to $20,000
Medium - $20,000 to $30,000
Large - >$30,000

Project Design and Management

Small - $3,000 to $10,000
Medium - $10,000 to $20,000
Large - >$20,000

Resource Design and Reporting Small - $3,000 to $6,000
Medium - $6,000 to $12,000
Large - >$12,000
Environmental Monitoring and Reporting Small - $4,000 to $12,000
Medium - $12,000 to $18,000
Large - >$18,000
Peer Review Services Small - $1,000 to $8,000
Medium - $8,000 to $16,000
Large - >$20,000
Site Restoration

Small - $5,000 to $10,000
Medium - $10,000 to $20,000
Large - >$20,000

Liaison Services Small - $8,000 to $16,000
Medium - $16,000 to $34,000
Large - >$40,000

Typically an environmental site assessment and site restoration project can be broken down as follows:

  Small Project Medium Project
Project Management $250 $800
Engineering and Reporting $750 $2,400
Field Technician $1,250 $4,000
Administrative $125 $400
Printing $125 $400

4.3 Distribution Strategy

The business will seek and retain environmental contracts. Once the work is completed, the consultant will deliver the work either by regular mail, e-mail, or in person. For any projects where the services need to be completed on-site, the business will do so. It is estimated that approximately 20%-30% of the business' projects will need to be completed on-site.

The distribution strategies of the business are very time and cost effective and well within the industry norm.

4.3 Promotional Strategy

In terms of promotion, Terra Engineering needs to meet a certain level of activity and market reach given the geographic spread of its primary markets. The businesses' Southern Michigan and Southern Ontario markets can be reached by using the local mediums and attain solid market reach.

However, for the business' Northern and Eastern markets, other forms of advertising mediums will be needed to successfully reach full market exposure. The incremental and on-going promotional strategy of Terra Engineering will accomplish the following goals and objectives:

•  Ensure that Terra Engineering has and maintains an image of professionalism and quality;

•  Ensure that Terra Engineering's Southern; Northern and Eastern markets are well educated of the entire service portfolio of Terra Engineering. Also, Terra Engineering's markets will be provided with the required contact information to make project enquiries;

•  Successfully position the business within the communities environmental services industry;

•  Assist in generating a consistent level of revenues for the business.

Below are the incremental and on-going promotional activities that Terra Engineering will implement upon opening the business.

Initially, the business will invest into the design and implementation of an identity package. This identity package will be completed by a local and reputable professional. More specifically, the identity package will include a company logo, business cards, company profile, letterhead, and envelops.

Although very straightforward, this will be done to demonstrate the professionalism of Terra Engineering. The identity package items will be purchased in quantities deemed sufficient by Mr. Johnson.

Secondly, the business will design and implement a direct marketing campaign. This will be done through general mail. Direct mailing will be made to the corporate market to initiate project enquiries. Both TAC Associates Limited and Barnard and Barry Environmental have agreed to supply Terra Engineering with a mailing list of targeted clients. This direct mailing campaign will consist of a complete company portfolio and will also contain important contact information. This activity will be completed during the first three months of business operation. This medium will mainly focus on the Southern Markets.

Thirdly, Terra Engineering will invest into the development of a trade show booth and will begin attending trade shows within South Western United States and Southern Ontario. The business will have its trade show booth professionally designed by a reputable company in Detroit. It is estimated that Terra Engineering will attend approximately two trade shows per year throughout its first three years of operation.

The two trade shows that Terra Engineering will attend in 2005 are: Southern Michigan Technical Trade Show and Environmental Engineering Conference 2005. Within the environmental services industry, this form of promotion is very effective and used widely by all active competitors. The costs outlined below for the trade show participation include travel costs.

Next, the business will invest into the development of professionally designed company apparel. The company apparel will display the company logo and name along with other important information. The company apparel will consist of outdoor clothing such as pants, golf shirts, wind jackets, and sweaters. This will be done to add to the professional image of the business and provide a uniform presence. This will be a one-time purchase and will be done as employees are hired so that they can be properly fitted.

As with all businesses, Terra Engineering, once it has successfully attained and completed projects for its market, will begin to receive word of mouth advertising. This form of advertising is the best form; however, the business will not rely solely on this form of advertising.

The total costs for incremental and on-going promotional activities are as follows:

  1. Identity Package $2,000
  2. Direct Mailing Campaign $2,000
  3. Trade Show Booth Development $5,000
  4. Trade Show Participation $10,000
  5. Company Apparel $1,000

Total Costs $20,000

4.3 Survival Strategy

During the initial two years of operation there will be a focus on retaining clients requiring environmental assessments as well as liaison services. These are knowledge based services which require a focus on advisory services, reporting and administration. Gaining a minimum of two medium sized projects in those knowledge based realms and one medium sized project in the project management realm will be the initial focus of the company.

This will provide approximately 800 hours in chargeable time. Assuming there is approximately 2000 hours available per year. This will leave approximately 1200 hours to conduct marketing and proposal writing.


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