How Does One Get Into The Excavating Business

HUDSONVALLEYEXT

I am currently an exterior contractor. We are building addition on a school for 50k. The project is going to take us at least 2 months. The septic people were putting in the septic today. It only took them three days and they got them $35k. I realized today I am in the wrong business. How hard is it to open up shop in excavation?

rino1494

Oh boy, here we go. Another "Excavators are making all the big bucks" thread.

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HUDSONVALLEYEXT

LOL I would have thought that all these trades make similar per hour rates. Every trade around here goes about $150 per man hour. The septic guys make $35k in 3 days I want to know how much of that would possibly be in materials needed for the job?

Driftwood

Materials couldn't be more than $228.00. My Dr. quit his practice ,now drives a cat .Anybody can do it!

firemike

Isn't that why you excavators need big trucks, to haul your money to the bank????

When I was doing underground I was taking in money hand over fist!

Then you take away:

• $2000 a month in equipment payments.
• Liability insurance
• Wages
• Workers comp
• Diesel fuel
• Equipment repairs
• Vehicle insurance
• Fixing employee screw-ups
• Lost/broken hand tools
• Tylenol
• Etc.
• Etc.

Didn't need the big truck to take the money to the bank anymore, a shoebox worked just fine...

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thom

Hey, I know a guy who's cousin's brother-in-law says ... oh, never mind.

tgeb

When a plumber shows up on a job he has a bucket filled with tools that collectively might cost him a few hundred bucks.
An electrician has this tool belt pouch thing that has all sorts of gadgets in it, and a step ladder, a few hundred bucks.
HVAC guys pretty much the same thing, and we have all seen the masons with their tool bags.

Now then compare that to what I need to bring to a site:
Just to get a machine there I need to have a truck and trailer, my set up is worth about 75K (and I got it pretty cheap). An excavator of any size that could do this septic in 3 days probably around 250K. What else did they have on the job? any loaders or dozers? More big bucks. Dump trucks?
How much material was used in this system? How about the septic tank/tanks? Pumping system?

There is quite a bit to look at when you point to a guy and say he made a killing on this septic system.

One observation that I have been able to make over the years is that most GC's, and a lot of other contractors have a whole lot nicer homes than nearly all the excavators I know.

But if you want to join up with us excavators....come on down we'll be glad to have you!


Misery loves company.

***No offense intended to any of the above mentioned trades, I know a lot of you guys have 10's of thousands of dollars invested in you businesses, just making a simple comparison.

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Tom

www.gebcon.com

HUDSONVALLEYEXT

A little mini excavator was used it was a 20 x 20 addition on a day care we were doing.


I realize that you guys have 200k worth the stuff to get into the business but this guys making cash with a little rental looking mini excavator...

Kgmz

The big question is what did he put in the ground?

Some ATU's (septic tanks with a anerobic treatment unit in them) can cost $20,000 to $30,000. The timer to control everything is $500 to $2000, then you have the blower unit, UV lights, and on and on. So he may have $30,000 in materials on that job, and now the profit doesn't look so good after insurance, equipment payments and maintenance, etc.

We are doing a job right now, small shopping center with restaurant. That will be on a septic system, and this system because of the restaurant will have three $20,000 ATU's at my cost, plus 9 pumps, assorted timers, and black tanks, gray tanks and a huge reserve tank.

bobcat_t190

Rental Looking excavator? I can go to United and rent a deere 450 for about 3500 a day plus taxes delivery and insurance and fuel plus my time operating it. Just beacause he rented it doesnt mean that its cheaper. Sometimes one rental payment could be equal to a months payment.

I am just starting out in the business and believe me it is hard. Each machine is at least as much as a mortgage payment every month. if you want to make lots of cash excavating isnt the business for you.

BrianHay

Have a look in here machinerytrader.com there you will find what it cost to buy or rent a machine. Then add on all the costs to operate, transport, maintain and everything else that goes with it. Big $$$ before you even put the bucket in the ground.

firemike

Brian,

Speaking of buckets in the ground, what ever happpened with the spyder you were looking at getting?

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-Mike-

BrianHay

I have one lender that has commited 40g for start up costs and I am working with a couple more to get the machine itself. Feels like its taking forever. We are halfway through our peak season here and I am missing out on a lot of work. Within the next two weeks I should get a final answer from the other leanders. If not I'm going to line up a months work for a machine (any kind of machine) and rent one with what we have now to get started.

firemike

Well I am glad things are still heading in the right direction, hopefully it works out soon. Keep us posted.

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