Excavating work

veejay · Feb 17, 2005

Hi to all,

I'm very seriously considering purchasing a L39 TLB. I would like to earn a modest income with this TLB but am very new to this line of work. I live in a thriving community where 3000 new home are constructed every year, do I have a chance of making this dream materilize? or would I be better off with some other excavating piece of equipment or forgetting this idea? I would welcome a short dialog to help me make a decision. A wise man seeketh council. I already own a BX2200 with every implement under the sun and love working in the dirt.

Jim

Syncro · Feb 17, 2005

Veejay- I've been in the const biz all my life and think you could have a lot of fun and also make some serious $$. As for getting started I'd sure not try to go from zero to sixty all at once, if it were me I'd get a job with an excavating contractor first and get the feel of how things are done. Theres a lot more to it than operating the machine, eg insurance, contracts, licenses, how to bid, you get the idea. As for a machine, no way would I even consider anything but a commercial tractor, eg Cat, Case, the commercial lines of JD, NH. You'll get spoiled real quick running a 'real' backhoe. I'd sure rather have a used Case 580 for 25 grand than any new ag or home owner machine. Before I get chastized by the group, theres nothing wrong or bad about CUTs, I own one, but they have their place and IMHO its not on a commercial job site. Anyways, hope this helps and good luck, if you do it right its a very rewarding occupation.

chucko · Feb 17, 2005

I would seem (around here anyhow) as houses are getting to the point that the water off one roof will hit the other guys wall because they are so near each other their might be a nice nitch market for a guy with a smaller TBL

AndyMA · Feb 17, 2005

I would think a good nitch market would be a small compact excavator with blade in the 8,000 to 12,000 lb range. There are a lot of landscapers and contractors with CUT's and skidsteers. Specialized services is where I see the $$ and demand. Harley Rakes, trenching, laser leveling, hydroseeding etc. I tried to so out on my own for a few years and it was rough. Selling, bidding and setting up jobs took a lot more time than you think. Now you get a job and are totally busy doing it with no time to sell the next job. Made the cash flow rocky. The way I solved this problem was to become what amounted to a full time subcontractor for a couple of landscapers. They bid the job, had the insurance, and dealt with the customer. When I needed material delivered, all I did was ask and the general, ordered it and paid for it. Even though I made less per day, (at that point 15 years ago, I charged the general $500/day for a New Holland 2120 with what ever attachment(s) I needed) I did quite well. After expenses I netted about 1200-2000 per week.

Running ads and looking at 10's of possible jobs per week was very inefficient way to get work. Referrals is where it's act. For every job I looked at from an ad, in almost every case they had a friend, relative who could do it for very little. People saw me working and I got good jobs from that. Reputable contractors and landscapers had no problem paying my rate and the money was always there. Also put up signs where ever you work and have cards and fliers made up. Leave flyers at all new home sites. The work will come in. Even when I was working for a general, many times I was asked if I took side work. I tried and it usually backfired. What I told people who asked was that the general booked all my work and they would have to deal through him to get me. Good luck. BTW I'm looking at getting a L39 also.

Just a few of my thoughts. Andy

veejay · Feb 18, 2005

Thanks to all of you who responded to my post. Syncro your right we should all take the advise to start slow and build.For the full-time person wanting to build a serious excavating business I'm sure your right on the Case, I've seen them in action.

Chucko the contractors are building so close around here I'd be afraid that my neighbor might fall asleep with a cigarette and burn the whole neighborhood down.

AndyMA & Chucko that's exactly what I'm looking for, the small nitch market part time and not being a slave to a big contractor. What got me thinking I could make this idea work is this: last summer when I needed some excavating work I just couldn't get anyone to respond, phone call after phone call everyone was already so tied up with "big" work I didn't have a chance. If I could get a few small Landscapers and a few homeowners that are in the same boat I was last year that would be perfect. I really only want to do this 10-20 hours a week since I am retired at a healthy 58. AndyMA is the 8,000 to 12,000 lb what they call a mini-excavator with tracks?
Again thanks any additional replies or remarks will be appreciated.

Jim

AndyMA · Feb 18, 2005

</font><font color="blue" class="small">( AndyMA is the 8,000 to 12,000 lb what they call a mini-excavator with tracks?
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yes that is what I am referring to. The 8 to 12 should have read pounds. An 8,000 lb unit can be towed with a pickup ok , but a 12,000 unit which is what I would really want takes a more serious truck to tow. many companies make them. There was an excellent buyers guide to compact excavators in Compact Equipment magazine a couple of months ago.

veejay · Feb 18, 2005

AndyMA,

what are the advantages of a mini-excavator?

Jim

ScottAR · Feb 18, 2005

I'm not Andy, but I'll take a shot.

Mini excavators are more efficent at trenching than a TLB of the same size. They are more manuverable, tread lightly on grass, (rubber tracks) and have 360deg. swing for spoil placement. Thumbs and hammers are an easy add on as well.

jim_wilson · Feb 18, 2005

You didn't post where you are located but here in Eastern MA it seems like finding contractors to work is a real pain. I needed to get my house hooked up to sewer a couple of years ago (whole town is converting over) and it cost me $1500 for the the contractor to dig a trench 40 feet across my front lawn - with no obstacles - drop the pipe in - and fill up the hole. They were here for a grand total of about four hours. It was two guys - two brothers actually - and they had an old Case backhoe of some sort. But they seemed to be doing pretty good.
The other thing I see that would indicate a possible good market for this type of service is that Kubota - and other tractor mfg's are supposedly having great sales lately. The emergence of SubCUT backhoe tractors has to mean that there is a lot of people out there with a need for this type of tractor to get small jobs done. I know this is why I bought my BX23 - I knew I couldn't find a decent contractor in my area who would want the work so buying the tractor was the least aggravating way to get the work done.

LarryRB · Feb 18, 2005

depends on where you live.. later on in this post, one gentleman talks about a 40 ft trench, laying pipe, covering the hole and leaving in a few hours with an old and probably worn out Case hoe... 1500 for the job sounds extreme. Only problem is, the cost of licensing alone, will bury most people in Massachusetts.. I know I have an unlimited hydraulic license and CDL A that I've had since the late 60's. Both are expensive and neither add in insurance.. At 1500 for that trench and two brothers considering they are perfectly legal.. they made 12 bucks and hour give or take or take a few cents... It's the periphial requirements at least in most areas of New England that prohibit or severely make it hard to do part time work. I have a great machine for the same reasons.. Have both the CDL and hydraulic license and at this point in time, they are almost worthless as far as keeping up...