Success Of Excavation Companies

mattbatson · 11-30-2006, 11:10 AM

I live in western NC.
Recently, I got some quotes for cutting a new driveway to my house.
The quotes were in the 6K dollar range for the excavation alone. This really surprised me, as the part of the drive that would need very much excavation is only about 15 wide by 30 ft long. No charges for dumping as I have a place for them to dump the soil (building a backstop for my pistol range on the back 5 acres). I honestly couldnt believe what they are charging for something that is only going to take a day at most.

I will probably go out and rent a bobcat for a couple of days, order up the gravel (about 500 bucks worth) and save about 5 grand!

So here is the kicker...
I called the whole phone book when getting quotes...maybe 25 businesses in my county. Every single one was booked until spring. Every one.
Now, I'm a GC and in the renovation/flipping business, and I know how many people are moving here every day...but this still amazes me as to how busy these guys are.

Now, my wife and I are thinking...these excav. guys are making a few grand for a days work. I mean, even if you figure in vehicle maintenance, fuel, blah, blah, blah...all of the quotes had these guys making a very princely sum of money...

So, we are now thinking about starting up in the excavation business. I think most of the small work around here is basements, driveways, septic...etc.
I have given some thought to going to work for 6 months with an evac. business here to learn what I need, and then going to the SBA for a small business loan.

I do home inspections, flip homes, and some side tile work. But, I have never dreamed of the kind of profit margins I'm seeing in the excavation business.

Is there a school for this kind of work? Other then learning on the job...or the hard knock one...?

Wolf · 11-30-2006, 04:34 PM

What kind of profit margin are you making flipping homes in western NC?

tgeb · 11-30-2006, 05:59 PM

We don't experience nearly that sort of margin here.

Perhaps you just got quoted by someone that is very busy and really was not interested in the job. As you can see he did not get the job.

I would not bank on the market remaining so overbooked if that is what you are hooking your wagon to. Of course with your other ventures you could pick and choose the jobs, only do the ones with ridiculous profit and still have something to fall back on in lean times.

rino1494 · 11-30-2006, 06:32 PM

LOL......You are right, we are so busy and raking in the big bucks, making millions and millions of dollars. Check any one of our checkbooks on how much money goes through them in one month. It would make your head spin.

Just the interest payments on our one excavator is over $450 a month. The other day we picked up bucket teeth and keepers, that came to $500. Picked up 2 brand new transfer pumps and flow meters. That came to $600. That is just for the small stuff. Wait till something major breaks.

mattbatson · 11-30-2006, 06:47 PM

Wolf,
I might make 15 to 20k on a flipper after about two months work, and then usually 3 months on the market....so 5 months average.
Nothing compared to what I'm seeing with the excavators in my area.

Unless there are some major hidden costs I dont know about?

tgeb,
You need to move to western NC!
I didnt just get the one quote. I got three! All within a grand or so of each other (one had a culvert drain pipe install cost that the others didnt). I got quoted around 12K to do the driveway, and on the average it was around 5500 dollars for the grading alone!
Each company said they could do the grading and rocking in a day with two people working it.

Now, I'm smart enough to do the numbers on this. Even if you arent working the job yourself and have an operator and unskilled laborer doing all of the work...this is still incredible money.
Unless there is something I'm missing here...
Is there?

That is the reason I'm posting on here.
Also to find the best way to learn the trade...formal school, work for an excav. company, or school of hard knocks.

Rino,
I am guessing that the reason for the cost of the job is just what your talking about. Equipment maintenance/cost. The equipment is so expensive and of course the know how to operate everything...means they can charge what they do. Right?

But, even with the figures your giving for maintenance/parts breaking...I still think the numbers are really good on this.

Remember, I called the whole phone book. I could only get a few out to even consider the job. All I heard was how booked everyone is until spring, and how no one would be able to start the job until next year or spring.
I smell lots of demand for little supply

tgeb · 11-30-2006, 07:20 PM

Quote:

Originally Posted by mattbatson

.
The quotes were in the 6K dollar range for the excavation alone. This really surprised me, as the part of the drive that would need very much excavation is only about 15 wide by 30 ft long. No charges for dumping as I have a place for them to dump the soil (building a backstop for my pistol range on the back 5 acres).

Is there a school for this kind of work? Other then learning on the job...or the hard knock one...?

There must be more to this than meets the eye. How much cut is in this 15' x 30' area and how far away is the back stop for the shooting range.

I can see if you have to have a dozer to make the cut and a loader on one end to load a truck ....then the truck....then a machine on the other end....you could be looking at some real money there.

As far as learning the ropes of equipment operation, I learned by example and by doing, while working for someone else, then improving and devising my own methods for doing things. It takes time in the seat. Think "efficiency", move more material with less effort.

IDIGDIRT · 11-30-2006, 08:43 PM

Gentlemen, as you can see I am new to this forum and am enjoying it very much. However I have been in the excavation/landscaping business for over 20 years and let me explain some things. First, I do not know the scope of your project and would not quote a price against a local contractor without a site survey first. That said, I see you are in the remodeling/flipping business. Add up all of the costs of your tools, pickups/trailers,essentially what it would cost to replace everything you have in your business. Let's say you have $3000.00 in tools alone. I have "1" attachment for my skid steer that cost $2900.00. Then lets talk insurance, liability for your type of work is priced different than mine. I doubt you would have the chance of cutting a fiber optic cable underground with that sawzall!! One of my dump trucks burns $150.00 per day in fuel, the tags for that truck cost me $500.00 per year. Also, I have to figure in soil disturbance permits, silt fence, and expect to find something you didn't plan on when making that cut into unknown soil. Now I'm not bashing you, and I,m not agreeing with the estimate either,(does sound steep) but there are more things involved than just renting a skid steer and moving dirt. I hope this clears things up and we can still be friends!!!

mattbatson · 11-30-2006, 09:35 PM

Okay, the driveway...
It is an existing driveway for about 80% of it's length. It is basically a gravel driveway.
Once it gets to about 30 or 40 ft from the road, it joins with my neighbors driveway, becoming a shared driveway.
I am diverting the driveway in this last 30 or 40 ft to one side and putting a privacy fence between my new driveway and the old shared driveway.
I want my own driveway, and I want it paved

The problem is, the land has a hump in this 30 or 40 foot stretch that needs to be shaved down a couple of feet. This dirt, which may be up to 10 yards...it is always more then you think...will be driven up my property about 300 yards behind my house where the pistol range is.
So, figure this excavation along with 6 inches of gravel...remember most of the drive already has about 6 inches of gravel from many years of being dumped there by previous owners (I've been there 6 months)

Thats it!

Okay, question...
Are you guys in other parts of the country pretty much busy all year round? Is it rare for you to go a week without work?
From talking to the companies here, they have to postpone work just to take a vacation.

One of the guys said that this was the slow season, and he usually lays off two guys from his crews this time of year...
I'd hate to see how busy they are in the summer!

I understand about the cost of doing business. I understand that this kind of work, much more then most kinds, requires some serious overhead and maintenance costs.

So here is the question.
Are any of you as busy as the companies I just described? And if so, what do you clear a year

?

I am guessing, with little real world knowledge about what it takes to run this kind of business, that the companies around here are clearing well over 2 or 3 hundred thou.
Am I way off?

IDIGDIRT · 11-30-2006, 10:25 PM

Mattbatson, that clears things up a bit. If I got this right, 15' wide by 40' long = 600 square feet + gravel coverage (1 ton will cover 50 sq.ft.@ 4" depth) = 12 tons.

10 cubic yards of cut material - I can cut this and load in less than 1 hour.

Not taking into consideration any permits, soil stabilation fabric, or anything unusual, you should be able to get this done for under $1000.00. Now keep in mind the companies you called may only run large equipment. The costs associated with just transporting this equipment to your site are great. My business took a big turn 3 years ago when I landed a contract with the local power company doing damage restoration. I stay busy and do not advertise at all(trucks are not even lettered). My guess is these companies either don't want to pull off other jobs to do this relatively small job, or they figure you won't argue and just cough up the dough. It's sad for our line of work that people are taking advantage of people out there. This is where a little research comes in handy. I now run relatively smaller equipment and have found that my profit margin is higher and my operating costs are lower.
As far as being booked up that far in advance, maybe they are but if that is the case I would be honest with the customer and not take the time to do an estimate in the first place. As I stated before I stay fairly busy and still do the occasional work for homeowners,etc. but only when I have the time. Also, I do not work weekends, that time is spent with my family, 1 thing I will not sacrifice on!

rino1494 · 12-01-2006, 06:08 AM

This is a slow year for us. We were a little slow in the spring, but not we are swamped. Even though we are slow, we are still working 6 days a week. The 3 years prior to this, we were working 6-7 days a week putting in around 55-60 hrs a week just to keep up and we still couldn't. This can be a very rewarding business, but can also destroy you. I have seen quite of few businesses go belly up.

mattbatson · 12-01-2006, 10:49 AM

Yes, everyone I spoke to (family and freinds) thought the prices quoted were very high. Most of us thought that the entire job, paving included, would cost around 5 or 6K!

Anyways,
good info...I appreciate it.
I had been thinking about how big I should go with equipment, and your comment about smaller is interesting. Especially considering that I would be mainly doing smaller stuff like housepads, septic, driveways...mostly residential...
There is a Kubota dealer nearby and we have been to look at equipment.
I am now thinking that a one ton truck with dump bed would be sufficient to start.

We are planning on starting small, doing side jobs, gaining experience...and seeing where it goes from there.

The building around here is showing no signs of slowing down anytime soon.

rino1494 · 12-01-2006, 02:08 PM

To be honest with you, the little guys that go around with a little tractor doing small stuff prolly ends up making more money in the end with less headaches.

POOLMANinCT · 12-01-2006, 03:42 PM

im sure the 6k figure sells all day. The big boy excavators on this site are doing commercial and have to answer to gc budgets inspectors etc.

when johnny comes home from work does he want to right a check for 6k or spend his whole summer doing sight work w/ his "craftsmen d handle spade" that has been in his garage for 15 yrs..

just a thought

ray

Wolf · 12-01-2006, 05:27 PM

Hey, Matt:

Thanks for your response about the flippers. I am wondering if you want any investors? I would be interested in doing that.

Also, where are you in western NC? I am very familiar with the Maggie Valley/Soco Gap area. Nice country.

mattbatson · 12-01-2006, 09:45 PM

CPSpool,
it's funny you mention digging with it with a shovel...I've already started.
I've done plenty of digging in my time. Used to be a lineman for bellsouth, and besides climbing poles and hanging cable, we used to dig our own ditches in hot humid florida weather.
It is actually great exercise. And the beauty of it is, you arent just exercising for the sake of exercise...your actually getting something done. I've dug for about an hour for two days now. From my progress, I would guess it will be about another two weeks

I'll have my excavation, and at the same time getting some much needed exercise. Win win.

Wolf,
Flipping is not as easy as the various T.V. shows on the subject would have you believe.
The single most difficult aspect of it is actually finding the deals. Especially now that every tom dick and harry who watches HGTV is now competing against you.
The OPM (other peoples money) aspect is the easy part. You can get a loan for just about anything.
My wife is a broker and even with constant searching, attending auctions at courthouses,etc...it is very difficult to find the deals.

I do live near maggie valley. Everything there is overpriced. Even the fixer-uppers

My simple formulae is to figure what the cost of improvements would be versus how much I could sell it for (priced for a quick sell)

But, I got to tell you, for the time and effort invested in a single flipper. From time to actually finding the deal, to financing, doing a lot of the work myself and contracting out the rest, and then waiting for it to sell...this whole excavation thing is starting to look better and better

ARCS · 12-02-2006, 12:17 AM

I have to guess that there is more to this than being said. I am not in the excavation business but am quite familiar with it. Around here average price for digging a basement, city water and sewer connections, average fill material and bcakfilling for a new house is about 20,000. I hear people say all the time that they could rent a backhoe for 1,000 per week and a skidsteer for 200 a day and do it themselves, but any builders I know including myself that tried it never did it again and appreciated the work that the 20,000 excavator charged.

IDIGDIRT · 12-02-2006, 06:21 PM

ARCS, great point. The rental stores around here have gained a niche by telling homeowners that they can do it themselves for less money. The thing they don't tell them is that when you rent that skid steer it comes with no insurance other than if a bolt of lightning struck it while on your property. I see homeowners digging next to the roads all the time and wonder what if they hit that fiber optic line buried next to the ditchline? Around here the utility locaters will tell you if you hit it the "down time " costs run around $10K per hour. How fast would it take to drain you savings account considering it would take hours for the company to mobilize a repair crew? I carry $2M in liability insurance just for that reason and for excavation work the annual premiums aint cheap! Years ago I cut a phone trunk line containing 800 pair cable(yes that's 1600 little wires) and luckily the locater marked it wrong but I still had to fight it to prove my point.

IDIGDIRT · 12-02-2006, 06:29 PM

Mattbatson, good luck on the project and a little hard work never hurt anybody. As far as getting into the business, start small and develop a good reputation in your community. When the only way people hear about you is by word of mouth advertising, you can almost write your own ticket, but always remember what got you there. One suggestion is to talk to the larger excavation companies and offer to sub out the smaller work to you.

More later, my dinner is ready!!

IDIGDIRT · 12-04-2006, 11:36 PM

Mattbatson, I saw in your earlier post you were looking at Kubota equipment. I only run 2 types of equipment these days, Cat and Kubota. The Cats are a little pricey but tough as hell, and my skid steer is the easiest one to service of all I have owned and seen.

As far as Kubota, my grading tractor is a 2006 4330 Grand L model with cab. The cabs on there models are absolutely awsome. At full PTO speed with the A/C running I can talk on the cell phone at a normal level. This tractor replaced a 1999 3130 open ROPS( I got tired of eating dust) and in 6 years, the only thing I replaced was the seat cushion! Plus Kubota offers 0% financing a couple of times a year.

Good luck on your venture and let me know if I can be of any help!

POOLMANinCT · 12-05-2006, 12:25 AM

Quote:

Originally Posted by IDIGDIRT

ARCS, great point. The rental stores around here have gained a niche by telling homeowners that they can do it themselves for less money. The thing they don't tell them is that when you rent that skid steer it comes with no insurance other than if a bolt of lightning struck it while on your property. I see homeowners digging next to the roads all the time and wonder what if they hit that fiber optic line buried next to the ditchline? Around here the utility locaters will tell you if you hit it the "down time " costs run around $10K per hour. How fast would it take to drain you savings account considering it would take hours for the company to mobilize a repair crew? I carry $2M in liability insurance just for that reason and for excavation work the annual premiums aint cheap! Years ago I cut a phone trunk line containing 800 pair cable(yes that's 1600 little wires) and luckily the locater marked it wrong but I still had to fight it to prove my point.

CBYD!?!??!

11-30-2006, 11:10 AM	#1
mattbatson View Profile mattbatson New Guy Send Message Follow Blogs (0) Threads (17) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: remodeling/tile work Join Date: Nov 2006 Posts: 17	Success Of Excavation Companies I live in western NC. Recently, I got some quotes for cutting a new driveway to my house. The quotes were in the 6K dollar range for the excavation alone. This really surprised me, as the part of the drive that would need very much excavation is only about 15 wide by 30 ft long. No charges for dumping as I have a place for them to dump the soil (building a backstop for my pistol range on the back 5 acres). I honestly couldnt believe what they are charging for something that is only going to take a day at most. I will probably go out and rent a bobcat for a couple of days, order up the gravel (about 500 bucks worth) and save about 5 grand! So here is the kicker... I called the whole phone book when getting quotes...maybe 25 businesses in my county. Every single one was booked until spring. Every one. Now, I'm a GC and in the renovation/flipping business, and I know how many people are moving here every day...but this still amazes me as to how busy these guys are. Now, my wife and I are thinking...these excav. guys are making a few grand for a days work. I mean, even if you figure in vehicle maintenance, fuel, blah, blah, blah...all of the quotes had these guys making a very princely sum of money... So, we are now thinking about starting up in the excavation business. I think most of the small work around here is basements, driveways, septic...etc. I have given some thought to going to work for 6 months with an evac. business here to learn what I need, and then going to the SBA for a small business loan. I do home inspections, flip homes, and some side tile work. But, I have never dreamed of the kind of profit margins I'm seeing in the excavation business. Is there a school for this kind of work? Other then learning on the job...or the hard knock one...?

11-30-2006, 04:34 PM	#2
Wolf View Profile Wolf Pro Send Message Follow Blogs (0) Threads (152) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity Pro Trade: demolition Join Date: Mar 2006 Posts: 152	Re: Success Of Excavation Companies What kind of profit margin are you making flipping homes in western NC?

11-30-2006, 05:59 PM	#3
tgeb View Profile tgeb Contractor Send Message Follow Blogs (0) Threads (3,278) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity Contractor Trade: Excavation, Foundation, Concrete Join Date: Feb 2006 Location: Maryland Posts: 3,278	Re: Success Of Excavation Companies We don't experience nearly that sort of margin here. Perhaps you just got quoted by someone that is very busy and really was not interested in the job. As you can see he did not get the job. I would not bank on the market remaining so overbooked if that is what you are hooking your wagon to. Of course with your other ventures you could pick and choose the jobs, only do the ones with ridiculous profit and still have something to fall back on in lean times. __________________ Tom www.gebcon.com

11-30-2006, 06:32 PM	#4
rino1494 View Profile rino1494 Vagitarian Send Message Follow Blogs (0) Threads (3,096) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity Vagitarian Trade: site and utility contractor Join Date: Jan 2006 Location: Dallas, PA Posts: 3,096	Re: Success Of Excavation Companies LOL......You are right, we are so busy and raking in the big bucks, making millions and millions of dollars. Check any one of our checkbooks on how much money goes through them in one month. It would make your head spin. Just the interest payments on our one excavator is over $450 a month. The other day we picked up bucket teeth and keepers, that came to $500. Picked up 2 brand new transfer pumps and flow meters. That came to $600. That is just for the small stuff. Wait till something major breaks. __________________ Life is hard. It is harder when you are stupid Uncle Sam wants YOU....to speak ENGLISH Last edited by rino1494; 11-30-2006 at 06:35 PM.

11-30-2006, 06:47 PM	#5
mattbatson View Profile mattbatson New Guy Send Message Follow Blogs (0) Threads (17) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: remodeling/tile work Join Date: Nov 2006 Posts: 17	Re: Success Of Excavation Companies Wolf, I might make 15 to 20k on a flipper after about two months work, and then usually 3 months on the market....so 5 months average. Nothing compared to what I'm seeing with the excavators in my area. Unless there are some major hidden costs I dont know about? tgeb, You need to move to western NC! I didnt just get the one quote. I got three! All within a grand or so of each other (one had a culvert drain pipe install cost that the others didnt). I got quoted around 12K to do the driveway, and on the average it was around 5500 dollars for the grading alone! Each company said they could do the grading and rocking in a day with two people working it. Now, I'm smart enough to do the numbers on this. Even if you arent working the job yourself and have an operator and unskilled laborer doing all of the work...this is still incredible money. Unless there is something I'm missing here... Is there? That is the reason I'm posting on here. Also to find the best way to learn the trade...formal school, work for an excav. company, or school of hard knocks. Rino, I am guessing that the reason for the cost of the job is just what your talking about. Equipment maintenance/cost. The equipment is so expensive and of course the know how to operate everything...means they can charge what they do. Right? But, even with the figures your giving for maintenance/parts breaking...I still think the numbers are really good on this. Remember, I called the whole phone book. I could only get a few out to even consider the job. All I heard was how booked everyone is until spring, and how no one would be able to start the job until next year or spring. I smell lots of demand for little supply

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11-30-2006, 08:43 PM	#7
IDIGDIRT View Profile IDIGDIRT New Guy Send Message Follow Blogs (0) Threads (24) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: Landscaping/Excavating Join Date: Nov 2006 Posts: 24	Re: Success Of Excavation Companies Gentlemen, as you can see I am new to this forum and am enjoying it very much. However I have been in the excavation/landscaping business for over 20 years and let me explain some things. First, I do not know the scope of your project and would not quote a price against a local contractor without a site survey first. That said, I see you are in the remodeling/flipping business. Add up all of the costs of your tools, pickups/trailers,essentially what it would cost to replace everything you have in your business. Let's say you have $3000.00 in tools alone. I have "1" attachment for my skid steer that cost $2900.00. Then lets talk insurance, liability for your type of work is priced different than mine. I doubt you would have the chance of cutting a fiber optic cable underground with that sawzall!! One of my dump trucks burns $150.00 per day in fuel, the tags for that truck cost me $500.00 per year. Also, I have to figure in soil disturbance permits, silt fence, and expect to find something you didn't plan on when making that cut into unknown soil. Now I'm not bashing you, and I,m not agreeing with the estimate either,(does sound steep) but there are more things involved than just renting a skid steer and moving dirt. I hope this clears things up and we can still be friends!!!

11-30-2006, 09:35 PM	#8
mattbatson View Profile mattbatson New Guy Send Message Follow Blogs (0) Threads (17) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: remodeling/tile work Join Date: Nov 2006 Posts: 17	Re: Success Of Excavation Companies Okay, the driveway... It is an existing driveway for about 80% of it's length. It is basically a gravel driveway. Once it gets to about 30 or 40 ft from the road, it joins with my neighbors driveway, becoming a shared driveway. I am diverting the driveway in this last 30 or 40 ft to one side and putting a privacy fence between my new driveway and the old shared driveway. I want my own driveway, and I want it paved The problem is, the land has a hump in this 30 or 40 foot stretch that needs to be shaved down a couple of feet. This dirt, which may be up to 10 yards...it is always more then you think...will be driven up my property about 300 yards behind my house where the pistol range is. So, figure this excavation along with 6 inches of gravel...remember most of the drive already has about 6 inches of gravel from many years of being dumped there by previous owners (I've been there 6 months) Thats it! Okay, question... Are you guys in other parts of the country pretty much busy all year round? Is it rare for you to go a week without work? From talking to the companies here, they have to postpone work just to take a vacation. One of the guys said that this was the slow season, and he usually lays off two guys from his crews this time of year... I'd hate to see how busy they are in the summer! I understand about the cost of doing business. I understand that this kind of work, much more then most kinds, requires some serious overhead and maintenance costs. So here is the question. Are any of you as busy as the companies I just described? And if so, what do you clear a year ? I am guessing, with little real world knowledge about what it takes to run this kind of business, that the companies around here are clearing well over 2 or 3 hundred thou. Am I way off?

11-30-2006, 10:25 PM	#9
IDIGDIRT View Profile IDIGDIRT New Guy Send Message Follow Blogs (0) Threads (24) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: Landscaping/Excavating Join Date: Nov 2006 Posts: 24	Re: Success Of Excavation Companies Mattbatson, that clears things up a bit. If I got this right, 15' wide by 40' long = 600 square feet + gravel coverage (1 ton will cover 50 sq.ft.@ 4" depth) = 12 tons. 10 cubic yards of cut material - I can cut this and load in less than 1 hour. Not taking into consideration any permits, soil stabilation fabric, or anything unusual, you should be able to get this done for under $1000.00. Now keep in mind the companies you called may only run large equipment. The costs associated with just transporting this equipment to your site are great. My business took a big turn 3 years ago when I landed a contract with the local power company doing damage restoration. I stay busy and do not advertise at all(trucks are not even lettered). My guess is these companies either don't want to pull off other jobs to do this relatively small job, or they figure you won't argue and just cough up the dough. It's sad for our line of work that people are taking advantage of people out there. This is where a little research comes in handy. I now run relatively smaller equipment and have found that my profit margin is higher and my operating costs are lower. As far as being booked up that far in advance, maybe they are but if that is the case I would be honest with the customer and not take the time to do an estimate in the first place. As I stated before I stay fairly busy and still do the occasional work for homeowners,etc. but only when I have the time. Also, I do not work weekends, that time is spent with my family, 1 thing I will not sacrifice on!

12-01-2006, 06:08 AM	#10
rino1494 View Profile rino1494 Vagitarian Send Message Follow Blogs (0) Threads (3,096) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity Vagitarian Trade: site and utility contractor Join Date: Jan 2006 Location: Dallas, PA Posts: 3,096	Re: Success Of Excavation Companies This is a slow year for us. We were a little slow in the spring, but not we are swamped. Even though we are slow, we are still working 6 days a week. The 3 years prior to this, we were working 6-7 days a week putting in around 55-60 hrs a week just to keep up and we still couldn't. This can be a very rewarding business, but can also destroy you. I have seen quite of few businesses go belly up. __________________ Life is hard. It is harder when you are stupid Uncle Sam wants YOU....to speak ENGLISH

12-01-2006, 10:49 AM	#11
mattbatson View Profile mattbatson New Guy Send Message Follow Blogs (0) Threads (17) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: remodeling/tile work Join Date: Nov 2006 Posts: 17	Re: Success Of Excavation Companies Yes, everyone I spoke to (family and freinds) thought the prices quoted were very high. Most of us thought that the entire job, paving included, would cost around 5 or 6K! Anyways, good info...I appreciate it. I had been thinking about how big I should go with equipment, and your comment about smaller is interesting. Especially considering that I would be mainly doing smaller stuff like housepads, septic, driveways...mostly residential... There is a Kubota dealer nearby and we have been to look at equipment. I am now thinking that a one ton truck with dump bed would be sufficient to start. We are planning on starting small, doing side jobs, gaining experience...and seeing where it goes from there. The building around here is showing no signs of slowing down anytime soon.

12-01-2006, 02:08 PM	#12
rino1494 View Profile rino1494 Vagitarian Send Message Follow Blogs (0) Threads (3,096) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity Vagitarian Trade: site and utility contractor Join Date: Jan 2006 Location: Dallas, PA Posts: 3,096	Re: Success Of Excavation Companies To be honest with you, the little guys that go around with a little tractor doing small stuff prolly ends up making more money in the end with less headaches. __________________ Life is hard. It is harder when you are stupid Uncle Sam wants YOU....to speak ENGLISH

12-01-2006, 03:42 PM	#13
POOLMANinCT View Profile POOLMANinCT Pro Send Message Follow Blogs (0) Threads (2,165) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity Pro Trade: Swimming Pool Contractor Join Date: Oct 2006 Posts: 2,165	Re: Success Of Excavation Companies im sure the 6k figure sells all day. The big boy excavators on this site are doing commercial and have to answer to gc budgets inspectors etc. when johnny comes home from work does he want to right a check for 6k or spend his whole summer doing sight work w/ his "craftsmen d handle spade" that has been in his garage for 15 yrs.. just a thought ray

12-01-2006, 05:27 PM	#14
Wolf View Profile Wolf Pro Send Message Follow Blogs (0) Threads (152) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity Pro Trade: demolition Join Date: Mar 2006 Posts: 152	Re: Success Of Excavation Companies Hey, Matt: Thanks for your response about the flippers. I am wondering if you want any investors? I would be interested in doing that. Also, where are you in western NC? I am very familiar with the Maggie Valley/Soco Gap area. Nice country.

12-01-2006, 09:45 PM	#15
mattbatson View Profile mattbatson New Guy Send Message Follow Blogs (0) Threads (17) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: remodeling/tile work Join Date: Nov 2006 Posts: 17	Re: Success Of Excavation Companies CPSpool, it's funny you mention digging with it with a shovel...I've already started. I've done plenty of digging in my time. Used to be a lineman for bellsouth, and besides climbing poles and hanging cable, we used to dig our own ditches in hot humid florida weather. It is actually great exercise. And the beauty of it is, you arent just exercising for the sake of exercise...your actually getting something done. I've dug for about an hour for two days now. From my progress, I would guess it will be about another two weeks I'll have my excavation, and at the same time getting some much needed exercise. Win win. Wolf, Flipping is not as easy as the various T.V. shows on the subject would have you believe. The single most difficult aspect of it is actually finding the deals. Especially now that every tom dick and harry who watches HGTV is now competing against you. The OPM (other peoples money) aspect is the easy part. You can get a loan for just about anything. My wife is a broker and even with constant searching, attending auctions at courthouses,etc...it is very difficult to find the deals. I do live near maggie valley. Everything there is overpriced. Even the fixer-uppers My simple formulae is to figure what the cost of improvements would be versus how much I could sell it for (priced for a quick sell) But, I got to tell you, for the time and effort invested in a single flipper. From time to actually finding the deal, to financing, doing a lot of the work myself and contracting out the rest, and then waiting for it to sell...this whole excavation thing is starting to look better and better

12-02-2006, 12:17 AM	#16
ARCS View Profile ARCS Member Send Message Follow Blogs (0) Threads (98) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity Member Trade: Builder/Remodeler Join Date: Nov 2006 Posts: 98	Re: Success Of Excavation Companies I have to guess that there is more to this than being said. I am not in the excavation business but am quite familiar with it. Around here average price for digging a basement, city water and sewer connections, average fill material and bcakfilling for a new house is about 20,000. I hear people say all the time that they could rent a backhoe for 1,000 per week and a skidsteer for 200 a day and do it themselves, but any builders I know including myself that tried it never did it again and appreciated the work that the 20,000 excavator charged.

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12-02-2006, 06:21 PM	#17
IDIGDIRT View Profile IDIGDIRT New Guy Send Message Follow Blogs (0) Threads (24) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: Landscaping/Excavating Join Date: Nov 2006 Posts: 24	Re: Success Of Excavation Companies ARCS, great point. The rental stores around here have gained a niche by telling homeowners that they can do it themselves for less money. The thing they don't tell them is that when you rent that skid steer it comes with no insurance other than if a bolt of lightning struck it while on your property. I see homeowners digging next to the roads all the time and wonder what if they hit that fiber optic line buried next to the ditchline? Around here the utility locaters will tell you if you hit it the "down time " costs run around $10K per hour. How fast would it take to drain you savings account considering it would take hours for the company to mobilize a repair crew? I carry $2M in liability insurance just for that reason and for excavation work the annual premiums aint cheap! Years ago I cut a phone trunk line containing 800 pair cable(yes that's 1600 little wires) and luckily the locater marked it wrong but I still had to fight it to prove my point.

12-02-2006, 06:29 PM	#18
IDIGDIRT View Profile IDIGDIRT New Guy Send Message Follow Blogs (0) Threads (24) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: Landscaping/Excavating Join Date: Nov 2006 Posts: 24	Re: Success Of Excavation Companies Mattbatson, good luck on the project and a little hard work never hurt anybody. As far as getting into the business, start small and develop a good reputation in your community. When the only way people hear about you is by word of mouth advertising, you can almost write your own ticket, but always remember what got you there. One suggestion is to talk to the larger excavation companies and offer to sub out the smaller work to you. More later, my dinner is ready!!

12-04-2006, 11:36 PM	#19
IDIGDIRT View Profile IDIGDIRT New Guy Send Message Follow Blogs (0) Threads (24) Photos (0) Reviews (0) Projects (0) Toolbox (0) View All Activity New Guy Trade: Landscaping/Excavating Join Date: Nov 2006 Posts: 24	Re: Success Of Excavation Companies Mattbatson, I saw in your earlier post you were looking at Kubota equipment. I only run 2 types of equipment these days, Cat and Kubota. The Cats are a little pricey but tough as hell, and my skid steer is the easiest one to service of all I have owned and seen. As far as Kubota, my grading tractor is a 2006 4330 Grand L model with cab. The cabs on there models are absolutely awsome. At full PTO speed with the A/C running I can talk on the cell phone at a normal level. This tractor replaced a 1999 3130 open ROPS( I got tired of eating dust) and in 6 years, the only thing I replaced was the seat cushion! Plus Kubota offers 0% financing a couple of times a year. Good luck on your venture and let me know if I can be of any help!