how to charge for excavation work

Excavation work can be a physically demanding and dangerous job, but it is also crucial for many construction projects. If you are a contractor or a worker in excavation, you are likely aware that charging for your services can be a complicated process. In this article, we will provide you with a guide on how to effectively charge for excavation work. This guide is suitable for both individual workers and contracting companies.

Hourly Rates vs. Project-Based Fees

The first decision you need to make is whether to charge hourly or a project-based fee. This decision will depend on the specific job and your level of experience. If you are uncertain how long a job will take or if you are unsure about your capabilities to complete the job efficiently, it might be best to charge by the hour. Hourly rates can range anywhere from $50 to $200 an hour, depending on your experience, equipment used and the level of difficulty of the job.If you decide to charge by the project, you will need to consider a few things. First, you need to determine the overall cost of the project, including materials, equipment and labour. Once you have calculated the total cost, you can add your profit margin and quote the client a single fee.

Equipment Usage Fees

When you take on a job, there are certain costs associated with the use of equipment, such as excavators, bulldozers and dump trucks. One option is to include the cost of equipment usage into your hourly or project-based fee. Another option is to charge separately for equipment usage. A standard rate for equipment is $150 to $300 per hour. In either case, it is important to be transparent with clients about equipment usage fees.

Travel and Accommodation Fees

When taking on a job, there may be travel expenses involved, such as fuel costs or overnight stays in hotels. If the job site is far away from your home or workplace, it is important to factor in these expenses. Charging a flat rate for travel and accommodation is one way to do this. For instance, charging an additional 10% to 15% of the total project fee is one way to cover these expenses.

Contingency Fees

Finally, excavation work can sometimes be unpredictable. Unforeseen obstacles such as hard rock, underground pipes or tree roots can significantly impact your work schedule and require extra work. One way to mitigate this is by including a contingency fee in your quote, typically ranging from 5% to 10% of the total project cost. This can help cover any potential extra labour or equipment costs if unexpected problems arise.

Conclusion

Charging for excavation work can be challenging, but there are ways to ensure that you are accurately and fairly compensated for your services. Whether you decide to charge hourly or by the project, be transparent about your fees and factor in all costs, including equipment usage, travel expenses and contingency fees. By following these guidelines, you can run a successful excavation business while establishing a relationship of trust and respect with your clients.