How to Price an Excavating Job | Key Factors to Know!
- Caleb Anderson
- Mar 18
- 7 min read
Whether you plan to work on a residential or commercial site, excavation is crucial to ensure a strong foundation. It also makes up a big chunk of the construction cost, which is why you should take the time to assess the project's cost accurately.
Knowing what to charge the client is crucial if it's your first excavating job. You may end up paying from your own pocket for miscalculating the excavation.
Fortunately, this guide goes over all of the costs associated with an excavating job, from land clearing to dirt removal, machinery, labor, and more. Our team can also explain how to price a pool builder job.
Factors That Affect Land Excavation Costs
Not all projects are the same. Land excavation costs can vary depending on the size of the site excavation, depth, and other factors. Some of these include the following:
Grading
For a solid foundation, you need an even surface. Grading refers to the adjustment of slope and soil on a job site so that it's easier for the excavation to begin. It makes up a significant portion of the total excavation costs, which is why it's important to do it right.
Before grading even begins, there are certain formalities that you must complete. Most municipalities require homeowners to submit a proper plan, which may specify limits of disturbance, land elevations, slopes, and construction schedule. It should also highlight the impact on soil and the steps to ensure sediment control.
On average, grading can cost anywhere between $500 to $5,000, depending on the size of the construction site. There are other factors that can impact land grading costs, and these include the following:
Environmental considerations
Soil composition
Site accessibility
Underground utilities
Permits and inspections
Weather conditions
Neighboring properties
Site Cut and Fill
Site cut and fill is a construction technique that removes soil from an elevated piece of land and uses it to fill the low areas to ensure an even surface. Too much elevation on the client's property would require a lot of work removing excess soil and transporting it to a dump.
On the other hand, if there is very little elevation and too many low areas to fill with soil, you will have to transport dirt to the construction site to even out the surface.
For an excavation company, minimizing as much waste as possible is important. Otherwise, additional site cut and fill could influence the total excavation costs. Site planners use a cut-and-fill map to improve efficiency throughout this stage of the project.
Before the excavation begins, careful planning is necessary. Detailed land surveys and software can help project managers create cut-and-fill maps, which provide measurements of elevation and topography. This is crucial in estimating labor and excavation costs.
Land Leveling
Land leveling refers to the smoothening of the construction site so that you can easily build the foundation and other structures. It requires specialized equipment to even out the surface and a couple of laborers to get rid of rocks, trees, stumps, and other objects. This can cost a lot of money, especially if the piece of land you're working on is massive.
A key thing to remember about land leveling is that depending on the project, you may need special permits. This could further impact the excavation costs.
Terrain
The best scenario for an excavation company is working on a piece of land with the right terrain. This can make it easy to carry out the job. However, if there are slopes that need protecting, you may have to use specialized equipment and techniques to prevent soil erosion.
A steep terrain can be incredibly difficult to work with. Even if you have specialized equipment, it'll take twice as much time, if not more, and the wear and tear on your machinery can further drive construction costs upwards.
Machinery and Equipment
Every excavation project is unique, and you must understand the challenges before creating a plan to overcome the obstacles. An excavation job may include lifting and moving, compacting and grading, and loosening rock, among other tasks. You'll need different types of equipment and machinery, which is why you should survey the land properly and plan for the project accordingly.
The more excavation equipment you need on the construction site, the higher the number of workers you must hire. Also, some machines may require skills and knowledge to operate, which means the labor costs are going to be high.
Other Factors to Consider
Besides the abovementioned factors, many other things can affect the excavation costs, and these include the following:
Laborer training costs
Emergency and rescue procedures
Adverse weather conditions
Changes in the client's requirements
Accounting for potential hazards
The Average Cost of Excavation in the United States
In the United States, the average cost of excavation is between $1473 and $5793 per cubic yard. However, this could be more or less, depending on the size of the project.
Here is the cost data table for quick reference:
Type of Costs | Average Price |
Land clearing costs | $200 to $6,500 |
Site excavation costs | $50 to $200 per cubic yard |
Land leveling costs | $50 to $165 per hour |
Dirt and rock excavation costs | $7 to $25 per cubic yard |
Cut and fill costs | $3 to $16 per cubic yard |
Trenching costs (sewer, septic, or drainage system) | $500 to $1,200 |
Machinery costs (rental) | $100 to $300 per hour |
Labor costs | $50 to $250 per cubic yard |
An operator with an excavator typically costs between $100 and $300 per hour, but you can reduce this expense if you already have the equipment. However, renting one out could add an additional $200 to $700 per day to your costs.
The cost table mentioned above uses different metrics. For instance, machinery costs are calculated on an hourly basis, whereas average labor rates are measured per cubic meter. To simplify cost estimation, using a consistent unit of measurement is important.
Here are the steps to calculate the labor costs for an excavation project:
Assess the scope of the construction project and list all the tasks involved.
Estimate the number of hours required to complete each task.
Determine the number of hours needed for both skilled and unskilled labor.
Multiply the workers' hourly rate by the number of hours for each task.
Add the costs of skilled and unskilled labor to calculate the total labor cost.
Once you're done with the steps above, do the same for equipment and materials costs. Add them all up to price your services. Similar steps can also be useful when determining how to price a tree service job.
How to Price an Excavating Job
Now that you know what are the major factors that influence the price of an excavating job, here are the steps that you should follow to help you calculate excavation costs per square foot:
Use a measuring tool to determine the length, width, and depth of the excavation.
Multiply the measurements to find out the total volume of the excavation work.
Divide the total excavation costs by the volume to determine the cost per square foot.
Did you figure out the cost of excavating a piece of land? Here's what you should do to price an excavating job:
Add the total costs with your profit margin, which is usually around 15% of the land excavation price.
You must also incorporate a 10% contingency fee, as you may incur unexpected costs as you excavate land.
Add all of these costs together to determine the final price for the earth excavation.
Best Practices to Follow to Price Jobs
Are you just starting an excavating business and need help with pricing? As a business owner, it's essential to get your costing right.
Here are some of the best practices to follow to help you price excavation jobs:
Labor Costs Are Important
Labor costs can make up to 30% of the total revenue. If you want to price jobs fairly, you need to think smartly. Here are two helpful tips to stay on top of your costs:
Record the time it takes to complete and document a particular excavation project. You'll need to use that as a basis for when calculating labor costs.
You'll be paying your laborers per hour, so calculate the time it takes to visit the construction site and come back. Factor all of that in when pricing the excavation job.
Always Double Check the Math
Whether it's labor or material costs, always double-check your calculations. You might be good at math, but humans are prone to making mistakes. If you underestimate the project's cost, you may have to pay for the additional expenses. That can adversely impact your bottom line.
A good way to get the costing right is to write down the different elements of the project and mention the total costs next to it. Use a calculator to add them together to arrive at the final price. For more ideas, consider websites for excavating companies.
Research Your Competition
Research what your competitors are charging for an excavation job. While you don't need to follow in their footsteps completely, using it as a benchmark for your pricing is a great tactic.
A key thing to remember is that your excavating business is unique. You may be offering a higher quality job, which is why researching your competitors doesn't mean matching your prices or undercutting your service.
Promote Your Excavation Services with Blue Collar Websites!
If you're just starting your own excavating business, it's crucial to build confidence in potential clients to let them know that you're the right person for the job. A great way to do that is by having a trade-specific website highlighting your services, pricing, and other important information to convince people to hire you.
At Blue Collar Websites, we have the skills and expertise to build and maintain websites for excavation businesses. With our on-page SEO services, we'll help create awareness about your company and improve your site's visibility to ensure you get more potential clients reaching out to you.
Ready to take your neighborhood by storm? Call us at (740) 609-2915 to work with an experienced designer and have your website set up in no time!
Comments