Starting An Excavating Company?

 
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Old 05-11-2011, 05:32 PM   #21
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Re: Starting An Excavating Company?


I've talked to a local contractor and he told me he'd be interested in kicking me some work... same goes for a local electrician.


Just be careful with contractors. Some of them are pretty honest up front but there are plenty who will tell you stuff like this and then you will never hear from them again. Every time a contractor tells me they want something done for sure and they want me to do it or whatever all I think is "well, you got the talking part done, lets see what happens when I ask for a deposit upfront". Unless people are willing to pay something upfront, they most likely arent too serious about having anything done. that has just been my experience.
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Old 05-12-2011, 07:14 AM   #22
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Re: Starting An Excavating Company?


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Unless people are willing to pay something upfront, they most likely arent too serious about having anything done. that has just been my experience.
That may be true for residential work and when you are working for homeowners, but not so in hard bid commercial work. You gotta have some working capital to get you thru to the first draw. With rare exception, our policy is subs get paid when we get paid, and everybody gets paid for work complete- no advances. Tough world.

And we are very serious about getting something done. That's kinda the point of the policy- it's a carrot on a stick- you get paid when you get something done, not before.

I think the OP will find this to be true if he does any work with commercial GC's
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Old 05-12-2011, 02:44 PM   #23
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Re: Starting An Excavating Company?


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That may be true for residential work and when you are working for homeowners, but not so in hard bid commercial work. You gotta have some working capital to get you thru to the first draw. With rare exception, our policy is subs get paid when we get paid, and everybody gets paid for work complete- no advances. Tough world.

And we are very serious about getting something done. That's kinda the point of the policy- it's a carrot on a stick- you get paid when you get something done, not before.

I think the OP will find this to be true if he does any work with commercial GC's
My dad does some bigger jobs, if I recall correctly it's always been 30%? up front for materials and the rest within 30? or 90? days after the job is done.
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Old 05-12-2011, 05:16 PM   #24
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Re: Starting An Excavating Company?


I try to stay away from a lot of commercial work. Around here it has gotten so cutthroat that its almost impossible to get the jobs unless you are one of the big players around town. I know a few guys here who are pretty much just turning over dollars right now and maybe making a very slim profit but thats not for me. If I am going to do a job I am going to make money and not just turn over dollars. It used to be anyone could get work wherever but there's a lot of things that "used to be". I dunno, I am finding that dealing with Joe Homeowner is not only easier but I am making more money than I would bidding commercial jobs I know I dont have much of a chance at getting. But that is just my take on things.
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Old 05-14-2011, 10:57 AM   #25
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Re: Starting An Excavating Company?


Renting over buying. You need to start with some equipment. You can't buy it all but you will need a truck, skid steer, trailer, tools and small ex. You will also need good credit so you can go to the bank. Most start ups fail because they lack financing.

I would stick to residential to start and learn the ropes. I would also buy a dump truck big enough that you can run it for hire as supplemental income. You need a CDL.

You should plan on putting every dollar back into the biz for a few years. I hope your wife has a good job or you live with your parents. Get used to having more bills than money for a while.
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Old 05-14-2011, 10:08 PM   #26
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Re: Starting An Excavating Company?


1) Learn how to price your work. Sounds like your brother is capable of helping you with this.
2) Horde your cash like a miser. The equipment is a tool, not your wife. Don't fall in love with it.
3) Come up with a logo, put stickers on your truck and hell yes on everything you rent. Take it off before returning to the rental house if necessary.
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Old 05-15-2011, 01:56 AM   #27
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1) Learn how to price your work. Sounds like your brother is capable of helping you with this.
2) Horde your cash like a miser. The equipment is a tool, not your wife. Don't fall in love with it.
3) Come up with a logo, put stickers on your truck and hell yes on everything you rent. Take it off before returning to the rental house if necessary.
Thanks, my brother is capable of pricing out this stuff. He does a few hardscapes a month that require a machine. He's usually spot on with materials and time as well. I plan on having whatever truck/machine I buy lettered. I think I've come up with the name I want to use. My brother's company is "Dirt Cheap Landscaping" and I want to do "Rock Bottom Excavating".

I am still looking at machines. I've narrowed it down to two little ones for now. Whichever one I pick my brother will be spliting the cost with me so the price difference is $4,000 for the Komatsu or $5,000 for the Yanmar.
A Komatsu PC40FR (roughly 8,500 lbs?) with a manual thumb, 12" bucket and 3900 hours for $8,000. The Komatsu will need tracks soon and has a lot of slop in the bucket so I assume pins/shims are in the near future.
A Yanmar xx?40 (roughly the same weight) with a manual thumb, a 18-20" bucket, new pins/shims/tracks/fluids and just under 3000 hours for $10,000. I know the owner, all hydraulic lines and pistons were replaced/rebuilt 2-3 years back.

Also been looking at mason dumps still. I really have my heart set on an old town truck (1997 K3500, 6.5 TD w/ 33k) but it needs doors and paint.

I haven't looked at trailers yet; it's last on my list. For now I can transport whatever I get with my brother's dump trailer.
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Old 01-24-2018, 02:06 PM   #28
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Re: Starting An Excavating Company?


turned out for you since you first posted?
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Old 01-24-2018, 06:55 PM   #29
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Re: Starting An Excavating Company?


Thatís how I purchased my first new backhoe back in the 70ís. Leased it with the option to buy. 90% of my lease payment money went as a down payment

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