Excavating work

dummy · Feb 23, 2005

even a few that he just thought about. 

That's the part that has me curious. Here, as long as we don't machine dig within 18 inches of the marks, we're in the "safe zone". Any finds outside of those bounds are typically the utilities responsibility.

And yes, we've had to get the locating co. back out on more than one occassion. Makes you wonder why theres a Warning: underground gas line sign and no yellow flags or paint. Or the pole with a cable running down the side, etc...

I did drive through a new development recently and happened to notice a utility installation in progress. Curb to house, 50 foot setback, 9 x 3 trench with all utilities inside at varying depths. I definitely would not want to do any repair work there.

2nstonge · Feb 23, 2005

Veejay,

I've been looking at doing the same thing, I'm a sole proprietor of a handyman/home improvement business. This will be an additional service and not a full time job in and of itself. I've spent the past 4-5 months talking with my insurance agent and doing the requisite background business planning; talking to contractors, landscapers, etc. Those discussions, along with my own home projects, helped me make the decision to buy my JD 4110 in Dec. In my neck of the woods there are ALOT of excavators and guys with bigger pieces of equipment for foundation work, etc. There's also ALOT of guys that just cut lawns and plow driveways.

The niche for me will be the small jobs for homeowners and contractors; the pain in the arse stuff. Rototilling, gravel driveway repairs (lots of 'em around here), trenching/drainage work, landscape raking and lot clean-up for new homes...you get the idea. The 4110 also has to cut my lawn and plow my driveway. I believe I can can keep busy a couple of days a week with my own customers and work that's been subcontracted or referred to me by an excavator (to small a job for him) or a landscaper (doesn't have a CUT/attachments). I'm sure there will be jobs I can't take - wrong size equipment - and jobs I shouldn't take - not enough experience or time - but overall I'm convinced there's a niche to be filled.

Looks like your state & local regs are going to drive licensing & how much insurance to buy, costs, etc. I have no special licensing requirements to worry about and total cost for $2M liability and replacement cost of all tools, trailers and tractor (covers all work/tools including my handyman stuff) and inland marine policy to trailer my stuff around is under $1300/year.

If you think you have a market in your area it's worth a discussion with your insurance company and the state to understand your legal requirements.

Good luck! -Norm

2nstonge · Feb 23, 2005

Oh, yeah, one more thing - regarding getting paid by customers. I take Visa, Mastercard and Amex. If people want to write a check I secure it with a CC number until the check clears. Monthly service fee from the CC company is $10 plus 2-3% of the transaction amount; that's easily buried in the cost I charge the customer. Most of my jobs are in the $200-$400 range.

Best, -Norm

MarkV · Feb 23, 2005

Like everything local conditions will have a big impact on how practical the business can be. Several have mentioned insurance and that is where I would start my investigation. Here landscapers insurance isn’t too bad but as soon as a backhoe is included into the policy is becomes contractors insurance and is very expensive. I guess when you look at the cost of fixing fiber optic cables you can understand why. Workman’s Comp. also needs to be looked at. There are situations where you are not required to carry it but many builders will not hire you without it.

You will have to look at the equipment cost and operating cost, like insurance, very closely to see if it is feasible to meet expenses and make a profit on a part time basis. It didn’t add up for me unless the equipment could work full time.

MarkV

CtRick · Feb 23, 2005

I have a friend that never worked in this business before. He went out 2 years ago and bought a 24 hp tractor. Used that for a year and realized he could make more money with a bigger machine, so he traded that in for a 45 hp early last year. By mid-summer he bought a 6000 lb mini-excavator and was doing well. Until... he realized that he needed a bigger machine. He just picked up his new 8000 lb mini-excavator last week. He has never advertised. He just does great work at great prices. His insurance is reasonably expensive, but he still makes enough to make it all worthwhile. It's a great business, I'm happy for him. Oh yeah, he has also gone from a F-150 to a F-350 Dump to a F-650? Dump, and 2 trailers. He's still making money.

Rick

B21nut · Feb 23, 2005

Syncro,
I agree with what you have said with one exception. The L39 is not an AG or homeowner machine. I have a B21 And my buddy runs a L35 and these machines are definetely commercial grade. The only difference is the size. I've had two Case backhoes and can only wish the quality of my B21 was in those Cases. Veejay has to narrow down what type of work he wants to do, then pick a machine. My buddy has done foundation excavation, small ponds and even some small septic systems with the L35.
John

coopers · Feb 23, 2005

Intersting conversation. I'm in the same boat, I would love to start an excavation business but my career is with law enforcement and I just don't think I'll have enough time to do the work. But I'll have to see what it's like down the road. I might be able to do it (I'm thinking I'll be just too busy with my career, it's a demanding job, so I might have to wait till I'm old and retired). A lot of excavation companies up here are one or 3 man operated, and there's A LOT. Those guys usually work for another company. That way, like mentioned, they don't have to worry about keeping up with bids to get jobs and make money for themselves. If the oportunity arises they take on a job themself, but most of the time they just are contracted out by someone larger or just someone who needs that type of work done and they go from there. I've seen companies that are disasters....companies that don't put enough effort in their job and they suffer. From not doing a good job on the job, to not using their money wisely and being stuck with **** old machines that break down and cause environmental damage with large fines tacked to their butt! /forums/images/graemlins/shocked.gif But that's how it is, makes it 'easier' for good honest companies to get a job. Not too many out there either.

Blake
WA

dummy · Feb 24, 2005

so I might have to wait till I'm old and retired retired in your early 40's ain't old/forums/images/graemlins/shocked.gif. And having been around this stuff for awhile, you should know that people aren't concerned too much with when the job gets done. Just how long it takes and costs.

dummy · Feb 24, 2005

overall I'm convinced there's a niche to be filled.
 Absolutely! And with more "disposable income" available and a smaller workforce, things should still be improving for the people that want to work. IMO, fitting the niche will be the tough trick. Right now, most of our work is septic, propane tank install / removal and water distribution lines. Have had requests to do some demolition work, but I'm not setup for that stuff. Don't have any dump trucks, and decided I don't want any dump trucks, we sub that out. Dirt, rock and spoils are relatively easy to get to the job or removed from the job, but trash is getting harder and harder to properly dispose of.