# Going rates



## zraffz (May 7, 2011)

I've been saving up to start an excavating business since 2011 and am finally in a position to start spending some money!

I spent 5 years excavating prior to a 3 year pause while I worked for a local road department. My brother owns a successful landscaping & hardscaping business for just about 10 years. We are looking to do a joint effort excavating business this spring. 

I am looking for a truck and trailer currently. Nothing crazy, 58,000+ GVWR tandem and a 20 ton trailer... Looked at a few but wasn't crazy about having a cat 3206 motor so now I have my eyes on a big cam 400 international. 
As far as a machine, we have our eyes on a hitachi ex120 (figure a 26-27k machine) with a thumb. 

Obviously to start out we want to establish an hourly price to figure out how to bid jobs. What is a reasonable rate to charge for such a machine with an operator? We are figuring right around $125/hour for the machine & operator and about $35/hour for a laborer. Is this reasonable, high/low? Do we make the first day on a job site a hair higher to offset machine delivery?


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## jlsconstruction (Apr 26, 2011)

When I sub excavation, for the guy with a 12k excavator, operator, and laborer it's $100 an hour, and $200 delivery fee. 



There are so many things to factor before you establish your hourly rate. The rate of other companies won't have the same over head as you. So figuring your over head, labor, and profit, and you can come up with your hourly price


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## Morning Wood (Jan 12, 2008)

A machine that size I would think $1000/day minimum. Rates around here are all over the place. 10k machine with operator could be $65/hr-$100/hr.


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## Jaws (Dec 20, 2010)

Labor+Materials+Overhead+Profit+PITA Factor= Price. Everytime. Up to you to determine labor and its burden, company overhead, what the PITA is if any, and what profit you want to pay the company. No one but you can help you there.


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## Jaws (Dec 20, 2010)

Thank you for posting on ContractorTalk.com. Straight pricing questions are frowned upon here, as are 'Going Rate' questions. If you are a contractor seeking advice regarding your pricing structure, the Moderators of this forum would like to direct you to this thread: "Pricing, Estimating and Success".

ContractorTalk.com is designed for professional contractors to discuss issues and topics related to the*construction*and remodeling industries.*

We apologize for any inconvenience that this may have caused. This thread has been closed


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