The cleanup crew: WCD Group handles all aspects of environmental-related issues

Source: http://www.njbiz.com, May 8, 2017
By: Mario Marroquin

The failure to properly identify environmental issues and control costs on the 785-acre EnCap site in the Meadowlands led to the end of a redevelopment plan that was to include luxury homes and a golf course, the bankruptcy of the developer that was planning to do the work, and losses so high to the insurance company that underwrote the project that it helped the company decide to get out of that sector of business.
It also was one of the best things to ever happen to WCD Group.
WCD Group, based in Pennington, was founded by Chip D’Angelo, a longtime environmental industry expert with experience in all aspects of the sector.
“We can do claims and litigation support in the courtroom, environmental consulting, engineering, cleanup, insurance, construction management; really, anything you can think of surrounding a contaminated property,” D’Angelo said.
But more than anything, WCD Group can fix projects that are bogged down by environmental problems.
That’s what D’Angelo and his company were doing when they got the call from insurance giant AIG about the EnCap property in 2007.
“EnCap was one of the largest environmental disasters in New Jersey history,” D’Angelo said. “It was a $148 million failure and bankruptcy in the Meadowlands.
“It was a major project in New Jersey, and AIG got left holding the bag. We became their construction manager. We fixed that for AIG. They hired us to finish that project and we were there with AIG for seven years on site, running that job.”
The assignment was just what D’Angelo envisioned when he started what was initially called WCD Consulting in 2002 with a partner.
D’Angelo, who previously owned an engineering and consulting company and ran a construction management firm, felt he was positioned perfectly for a new role.
“We said to ourselves, we understand the whole industry,” he said. “We understand the consulting side, the testing side, the contracting side, so, where’s our value?
“Our value is sorting out projects that are going south or are in litigation or that insurance companies are paying out. Because we could come in as a consultant and look at a project and be completely objective. That’s what started WCD Consulting as an environmental claims and risk management company servicing the insurance community and the legal community.
“AIG was our first client.”
By the time WCD had completed work on the EnCap site, AIG decided it wanted out of the environmental insurance business.
D’Angelo was happy to fill the void.
By adding all aspects of the environmental industry under its umbrella, WCD Group has jumped from $17 million in revenue in 2016 to a projected $27 million in 2017.
“We’re hitting on all cylinders right now,” D’Angelo said. “I feel pretty good right now. I have to tell you; we’re doing great.”
Not too bad for a self-described poor kid from South Jersey who went to college with a love of water conservation and left four years later with a degree in a program the school started while he was there:  environmental science.

•••

D’Angelo began his journey in environmental consulting and engineering, shortly after graduating from Montclair State in 1976.
He wanted to take advantage of his love for the outdoors and the recently passed Clean Water Act, so he helped form Kaselaan & D’Angelo Associates in 1980.
“When I graduated, the environmental movement was just gaining ground,” he said. “I was an outdoorsman, a fisherman. The first thing I did was water pollution consulting and engineering.”
He learned early on, however, to go with the flow of business.
“I was a water guy,” he said. “One hundred percent. But, life changes.
“A laboratory hired us to do water sampling. But, during the project, the laboratory said, ‘Do you guys know how to sample for asbestos?’ I said, ‘Sure.’ And then I literally went to Drexel library that night, looked up the method, and the next day I was sampling for asbestos.
“We ended up becoming a national asbestos consulting and engineering company.”
He sold the company to Hill International in 1991, agreeing to a noncompete in the consulting field nationwide for three years. Soon after, he got an offer to be the CEO of an environmental construction company in Houston.
D’Angelo said the experience was invaluable.
“As consultant at K&D, we were managing construction jobs every day, so I understood construction management,” he said. “But, instead of being on the design and professional side of the construction project, the architect, engineer, designer, I became a contractor and the head of a construction company that was actually performing the work. So, it’s in the same industry, same disciplines, but it was a great learning experience because I had always been on the white-collar side. I took a step into the blue-collar side. That turned out to be very important.”
When he returned to New Jersey at the turn of the century, he was able to offer all of his work experience to what is now known as WCD Group.
“When we were diagnosing claims in 2002 and 2003, our clients asked us, ‘Can you fix it, too?’ he said. “So, we went from a diagnosis firm, like a claims consultant, into a construction management company where we hired construction staff and put people in construction trailers. We went from diagnosing the problem to managing the work on behalf of our clients, which were insurance companies and lawyers, to fixing the problem.”
And with the departure of AIG, D’Angelo was able to add insurance consulting and solutions, picking up clients — and employees — along the way.
“It’s come full circle,” he said. “We were AIG’s consultant for all those years. When they decided to exit the business in 2016, we were in a great position. We have recently hired two key executives at AIG who used to be my clients, and business has never been better.”
But will it remain so in the future?

•••

President Donald Trump’s administration has talked about rolling back environmental regulations. D’Angelo does not feel any efforts will have a negative impact on his company.
“We do very little, if any, federal government work,” he said. “We never work for EPA; we’re all private. So, major federal rollbacks will not affect us. Federal regulations may be squeezed, but state and local regulations are not going to be rolled back. Most things are done at the state level, so we’re not concerned too much.
“And from what we hear, one of the biggest federal drivers, Superfund cleanup, is not going to be rolled back. We hear this administration recognizes the value of cleaning up these sites, because it’s good for business. Once those sites get cleaned, they are eligible for development.”
New development, D’Angelo said, is key to his business.
“We do work for all the people who are developing in New Jersey in places such as Jersey City or Hudson County,” he said. “They want to build something on that site and they need to clean it so they can build their residential or mixed-use or commercial property. They’re not being driven by EPA regulations, they are being driven by a business deal. They want to buy and build.”
For those reason, D’Angelo feels his company will benefit from increased funding to the Transportation Trust Fund.
“Any infrastructure project obviously spurs construction, and that usually spurs environmental work,” he said.
“Infrastructure projects often have two things: an environmental soils component or the demolition of properties that are contaminated.”
And even if D’Angelo does not get that work, his company still can benefit.
“When a new highway or a new road goes in, it brings development to an area. So it’s a catalyst for us. If it’s not our direct client, it certainly stimulates development. And if developers want to build, they need us.”
D’Angelo is confident about the future. He’s made a number of acquisitions in recent years, including an engineering firm, to help him earn more work.
And though he estimates 80 percent of his business originates in New Jersey, he has satellite offices in New York City, North Carolina, Georgia, Florida and Louisiana.
He has 75 employees now, but figures that number will grow. And the growth will come in bunches.
“I’m 63 years old,” he said. “Let’s just say I’m losing patience with organic growth. I’m in discussions with another acquisition or two, that’s how we’ll grow.”

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