Can the clause be signed electronically?

Yes—electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

Do I need a notary or witnesses?

Not typically required for most asbestos clauses unless state law or contract form requires notarization for property transfers; verify local rules and any lender requirements.

Who pays for clearance testing?

The clause should state whether the owner, contractor, or project escrow pays for clearance testing and who accepts certified results before re‑occupancy or final payment.

What records should I retain and for how long?

Retain surveys, lab reports, removal manifests, and certificates for at least three to seven years; HIPAA‑related records require six years (45 CFR §164.530(j)).

What happens if unlabeled asbestos is found during work?

Follow the clause’s trigger language: stop work as required, notify parties and regulators, engage a licensed abatement contractor, and document costs under the agreed payment and change order process.

Does insurance always cover abatement costs?

Not always; coverage depends on policy terms and timely notice. The clause should require contractors to maintain pollution and general liability limits and indemnify where appropriate.

Electronic Signature
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Asbestos Removal Clause

Asbestos Removal Clause

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13.06[2]

Asbestos Removal Clause

Asbestos Removal

(a) Landlord shall cause the abatement and removal of all asbestos containing material ("ACM") located on the floor of the Building prior to Tenant's occupancy. The Premises shall be cleared of all ACM if feasible and encapsulated if it is not feasible to remove the ACM.

(b) Landlord shall provide to Tenant an air-sampling report following the completion of the ACM removal or encapsulating. Before the commencement of any Tenant Work in the Premises, Landlord shall obtain and provide to Tenant a report conclusively demonstrating the favorable results of clearance air- sampling airborne Fiber Analysis performed in accordance with NIOSH Method 7400, counting rules "A" or equivalent, for at least five (5) locations on the floor using Phase Contract Microscopy, which test shall demonstrate that no more than .005 fibers per cubic centimeter are present. The Landlord shall bear the costs of these tests.

(c) The results of any clearance or encapsulating air-sampling shall be deemed satisfactory by Landlord and Tenant under this section if the results satisfy air content thresholds for asbestos fibers established by the appropriate governmental authorities or entities having jurisdiction in such matters allowing occupancy of the Premises.

What the Asbestos Removal Clause Is and Where It Belongs

An Asbestos Removal Clause is a contract provision that allocates responsibility for identifying, testing, removing, containing, and remediating asbestos-containing materials discovered during a project or transaction. It defines when a survey is required, who engages licensed abatement contractors, who pays for sampling, removal, and clearance testing, and how regulatory notifications and permits will be handled. The clause also addresses scheduling impacts, required certifications or reports after removal, insurance and indemnity obligations, and any holdback, escrow, or lien-waiver mechanics necessary to manage financial risk.

Why Include an Asbestos Removal Clause in Your Contract

A clear clause reduces regulatory risk, prevents cost disputes, speeds decision-making when hazardous materials appear, and defines liability, insurance, and reporting duties so parties understand expectations before work begins.

Core Elements to Include in a Professional Asbestos Removal Clause

A robust clause combines scope, compliance, health-and-safety steps, financial allocation, timing, and post‑removal certification so the parties manage risk, meet regulatory obligations, and maintain project schedules.

Scope of Work

Specify which materials, building areas, and activities are covered; state whether latent asbestos discovered after contract signing is included or excluded and how scope changes will be handled.

Regulatory Compliance

Require adherence to applicable federal and state asbestos rules and local air district requirements, plus contractor compliance with licensing, notification, and disposal standards.

Testing & Inspection

Define when surveys and bulk sampling occur, who orders them, laboratory accreditation expectations, and acceptance criteria for clearance testing after abatement.

Removal Procedures

Set required abatement methods, containment standards, worker protections, transport and disposal protocols, and documentation to be delivered after completion.

Cost and Payment

Allocate initial testing costs, removal costs, change order procedures, holdbacks or escrow arrangements, and whether insurance or indemnity will cover overruns.

Liability & Indemnity

Spell out indemnities, limits on damages, insurance requirements for contractors and owners, and procedures for dispute resolution tied to asbestos events.

Step-by-Step: How to Complete the Clause for a Contract

Follow these steps in order so responsibilities, timing, and compliance are clear before work or transfer begins.

01

Order Survey: Commission an accredited asbestos inspection before finalizing terms.
02

Draft Clause: Insert scope, triggers, payment, and regulatory obligations into contract language.
03

Assign Contractor: Name licensed abatement contractor and confirm insurance and licenses.
04

Sign and File: Execute the contract and distribute copies to all stakeholders and regulators when required.

How to Configure an Online Clause Workflow

Configure e-forms and routing to capture survey results, contractor credentials, and signed approvals automatically.

Field \| Configuration	Entry type \| Value or rule
Signature authentication	Email + SMS code for signer verification
Conditional removal fields	Show abatement section only after positive sample entry
Attachment requirement	Require asbestos survey PDF before signature
Audit trail	Capture IP, timestamp, and user ID for each action

Where to Send or File Completed Clause Documents

Know the primary destinations: contracting parties, regulator (if required), contractor, and the project owner or escrow holder.

Contracting Parties: Each party should receive a signed copy for their records
Licensed Contractor: Provide survey and signed clause to the abatement contractor
Local Regulator: Send notifications and permits to the air district or state agency where required
Insurance Carrier: Deliver certificates and signed clause to insurers for coverage validation

Digital Signing and File Format Considerations

Use a platform that supports PDF and DOCX formats, captures an audit trail, and can attach inspection reports and contractor credentials.

Formats: PDF, DOCX supported
Integrations: Connects with cloud storage
Audit: Timestamped audit trail

Required Information: Data Fields the Clause Should Capture

Full Legal Name: Exact party name

Property Address: Street, city, state, ZIP

Survey Date: MM/DD/YYYY

Contractor License: License number and state

Insurance Limits: General and pollution limits

Clearance Report: Post‑abatement lab report

Common Preparation Mistakes to Avoid

Failing to require a baseline asbestos survey before contract execution, which can shift discovery disputes to after work starts and delay remediation.
Leaving financial responsibility vague or using terminology like 'reasonable costs' without caps, leading to disputes and possible lien claims.
Not verifying that the named abatement contractor is licensed in the project jurisdiction, resulting in noncompliant work and potential fines.
Omitting post‑removal clearance testing and documentation requirements, which may impede re‑occupancy or final payments.

Key Risks and Potential Penalties If the Clause Is Incomplete

Regulatory Fines: State or EPA penalties possible

Civil Liability: Third‑party damage claims

Insurance Denial: Coverage may be denied

Project Delays: Work stoppage and overruns

Contract Disputes: Arbitration or litigation risk

Worker Safety Violations: OSHA citations possible

Time-Sensitive Dates Often Linked to an Asbestos Removal Clause

Track survey, notification, removal, clearance testing, and retention deadlines to maintain compliance and meet closing or occupancy schedules.

Pre-Execution Survey Deadline:

Complete survey before signing where practical

Regulatory Notification:

Provide required notices per state or local rules

Removal Window:

Schedule abatement to minimize project disruption

Clearance Testing:

Obtain passing clearance report before re‑occupancy

Record Retention:

Keep removal records per retention rules

Comparison: signNow and Common eSignature Providers for Clause Signing

Basic vendor comparisons for starting price and common enterprise features; signNow is listed first per vendor convention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Bulk Send	Yes (Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA required)	Yes (BAA available)	Yes (BAA available)	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Real-World Use Cases and Customer Experiences

Two real examples show how parties used an asbestos clause to manage risk and speed project completion.

Optica Ventures (COO)

A small portfolio owner needed remote execution for remediation language quickly

The clause named licensed abatement and escrow triggers
The team reported simpler customer handoff and consistent documentation, noting the process was easy for internal staff and external clients.

Martin Properties (Founder)

A property manager required fast clearance reporting to reopen units

The clause required prework survey and contractor credentials
They processed and executed documents online with compliant records, enabling timely occupancy and consistent audit trails.

Who Typically Signs the Asbestos Removal Clause

Property Owner

Owners or their authorized representatives sign to accept liability allocation, escrow holds, and authorizations for inspection and remediation work; they must ensure insurance and disclosure obligations are met.

Licensed Contractor

The abatement contractor (or their authorized officer) signs to confirm licensing, insurance, scope acceptance, and compliance with regulatory disposal and clearance testing requirements.

Frequently Asked Questions About Using an Asbestos Removal Clause

Answers to common questions about enforceability, electronic signing, who must sign, and what records to keep.

Need help? Contact support

Can the clause be signed electronically?
Yes—electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
Do I need a notary or witnesses?
Not typically required for most asbestos clauses unless state law or contract form requires notarization for property transfers; verify local rules and any lender requirements.
Who pays for clearance testing?
The clause should state whether the owner, contractor, or project escrow pays for clearance testing and who accepts certified results before re‑occupancy or final payment.
What records should I retain and for how long?
Retain surveys, lab reports, removal manifests, and certificates for at least three to seven years; HIPAA‑related records require six years (45 CFR §164.530(j)).
What happens if unlabeled asbestos is found during work?
Follow the clause’s trigger language: stop work as required, notify parties and regulators, engage a licensed abatement contractor, and document costs under the agreed payment and change order process.
Does insurance always cover abatement costs?
Not always; coverage depends on policy terms and timely notice. The clause should require contractors to maintain pollution and general liability limits and indemnify where appropriate.

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