Lot Grading

Trencher

I wasn't sure where to place this topic, but I figured since this deals with the grounds work of a location, it would be fitting.


I was approached about a month ago to grade a lot for sodding after new home construction and at the time I didn't know what the going rate or method of charge was to do such a thing with a compact track loader. I was approached again yesterday evening with this and I want to get it right. I know areas differ in pricing.
I am in South Louisiana where the housing market is hot and the house prices are raging from, $176,000 to $330,000


Some people here charge:

• $45/hr for a tractor w/ box
• $60/hr for skid steer with bucket
• $75/hr for trenching
• Even as high as $100-$150/hr for the same skid steer services in nearby sub-divisions.
• OR a package deal of $2,500 for: pad grading, driveway cut, lot clean-up and final grading.

They charge a destination fee figuring at a 2 hour rate to cover round-trip milage.

The ground is not rocky, but it does have some feeder roots from trees that were there before, which is easily covered by topsoil.
The ground can be worked fairly easy.

My question is, what is the normal method of charge on this work?

If I were to do the house pad, driveway cut, trenching for electrical and water services, and lot grading, would it be better to offer a package price, or is that running into a huge risk of unseen problems which could keep me there longer than I expected AND opening the door for the HO to add in extra duties not quoted?

I don't want to give a price where I will lose the jobs for being too high, or lowball the other guys, but I don't want to volunteer a, "bend over" either.

Do you think homeowners/builders actually think the $150/hr rate for skid steer service is reasonable?


Thanks so much!
Allen

Fulcrum Services, LLC -- 225-324-5792

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jmic

Wow! I can see doing occasional jobs for a home owner and doing a job for them with a contract price , blowing it out and maybe coming up with that / hr. I can't see on the other hand how you could bid work down there for $150.00 / hr. for a skid steer against other guys bidding and be getting the jobs. That just sounds way to high. And I thought our pricing around here was high!

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Joe

Same Old

Better cash your check quick!
They won't be in business long.

Trencher

$150/hr isn't what I charge, that is what some people here make. I just don't see how the HO is that blind. I know in the Northeast the charges are much larger than here, that is why I think it is a shock to see $150/hr..

I figured bidding a job at HALF that would get me the work and it would still be too high for a skid steer using no hydraulics, but it is slow going.

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4theroc

I cant see how anybody can stay in business doing work by the hour. If those guys down there are grading a yard out for $45 a hour with tractor they are dumb. I guess somepeople dont mind being broke and working for nothing. Minimum rate for my tractor is $275 for stuff 2 hours or less. If im grading a yard, if its small you figure $.20-$25 per sq. foot. Huge yard meaning 3/4 acre of more about $.10-$.15 per sq. foot. and every load of topsoil $165 for 7 yards delivered

Trencher

The market is swarming with tractor and boxes and it is hard to convince the builder/HO that a compact track loader is much more versatile. In that, they keep using the tractors and I have to compete with them in pricing. I guess they know what they have with a tractor and haven't a clue as to what a skid steer/track loader can do.

We have guys around here, who work for the local phone company, using the phone company's truck and trencher to cut 400' of water line at 2 feet depth (since we don't get that cold here) for $150 TOTAL!!!! It takes them 4 hours just to cut!! I can have that trenched, run pipe, and backfilled in 2.5 hours. (I guess it doesn't matter though)

100% profit for the guy and it knocks me completely out of the loop.

The guys have been reported, but they are still cutting.

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Cole

See thats the kind of things that piss me off about our industry. You have all these people who have regular 40 hour jobs yet come on the weekends and cut us out of the business offering to do work for dirt cheap. The thing I might do, is try to educate the client on why a track loader is the tool for the job etc...

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Trencher

I completely agree. When someone comes in and cuts your legs out from under you, it completely drives the market price down if they are consistently safe enough to not have an accident; however, it is that ONE time when something does happen with the guy who doesn't have insurance is when we will be able to say to the owner, "See, I tried to inform you."
Sadly, until then the owner will, if privy to the circumstances, be counting the odds of such an incident.

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rino1494

When grading yards, I figure on a daily rate for my machines. I get $75/hr for our 2 small dozers. I'll figure 8-10 hr days, sometimes jobs will take 2 days. Plus mobilization.

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