Talk about my approach to Bidding jobs for my Small Excavating Company

[@ronlawrence5021]

Finding out how little people charge to do this kind of work is always shocking to me. The cost of buying and maintaining these machines is astronomical. The financial risk these guys take and the cash outlay just to "get going" cannot be understated. And what's really annoying is when you find out the profits realized by the white collar guy for the "services" they provide. Attorneys....car finance people.....stock market folks.....programmers....the income these people generate in comparison to the risk they take is minimal in comparison. It seems to me working people need to stop underbidding each other and realize the snobs in their million dollar homes need our services far more than e need theirs.

[@Peterbilt359]

Ron Lawrence I've been excavator for 35 years as soon as I try to raise rates someone shows up for half what I am.

[@mikesbobcatservicesllc-mic6927]

In Arizona we charge 150 per hour for a John Deere 333G also 150 an hour for a Bobcat e 55 But the cost of living is probably little higher than where some of these folks are bidding jobs.

[@ronlawrence5021]

@@mikesbobcatservicesllc-mic6927 I'm from AZ as well, Mike ( I live up on the rim) so I know exactly what you're talking about. I'm retired at the moment, and was looking into doing some lot cleanup work just to stay busy. But when I found out the pittance these guys are making *after* they shell out tens of thousands of $$$ for a skidsteer or an excavator....a trailer to haul it....+ a truck heavy enough to pull it..... Frankly I just don't see how people stay in business. A crap excavator with 4K hours on it is gonna cost you $30K...and you're going to put that much cash into it again just to get it running reliably. Unless your time is only worth $10 an hour, I just don't see how people are doing this?

[@mikesbobcatservicesllc-mic6927]

@@ronlawrence5021 Yeah you're right ron. I charge 150 an hour even for my minis Bobcat S70 and John Deere 17GX. I'm running a forward for 50 that's $65000 In the trailer is another 30000. So yeah if they don't want me A150 an hour Find a Yahoo with broken down equipment. But the fact is they all want me and they don't care what the hourly rate is. They just want the job done and done right.

[@mikesbobcatservicesllc-mic6927]

@@ronlawrence5021 Sorry I meant Ford 450 65000

[@fulltiltgrading8366]

Great video. There aren’t enough down to earth contractors like yourself out there anymore. Love the channel 👍🏻

[@DirtPerfect]

Thanks

[@sassafrasvalley1939]

Thanks Mike... it’s a tough topic to tackle. The variability a of two very similar jobs can be huge. Last summer, I put in two culverts. Both on the same road... one mile apart. Both were the same diameter and length. However, one required riprap and a lot of fill brought in. The other needed a concrete funnel and spill. I bid both as T&M. Surprisingly they ended up costing almost the same. I would have bet a whole case of Pepsi that they wouldn’t be close! Again, thanks.

[@sparky201]

It's a SWAG. A SWAG is" Someones Wild Ass Guess." I learned that years ago when I became an Estimator. Yours was a very good explanation of the process.

[@DirtPerfect]

Thanks

[@cobrayzf]

@@DirtPerfect SWAG = "Scientific Wild Ass Guess" It means there is at least a little intelligence behind it. In technology we use that term quite frequently.

[@rodneyallen2672]

sophisticated wild ass guess

[@williamdegnan4718]

Beware of the "scope creep". 👾 If it takes more than 15 minutes, it's worth a signed change order. It avoids hard feelings when the bill is presented. 😤

[@nursetamee]

I have no idea how I ended up here but I'm fascinated! I just binge watched about 10 videos on different channels about excavating. I'm a nurse practitioner by trade but would love to know how to run all these awesome machines! I wish I knew how lucrative these businesses were 20 years ago. I could have had a good side hustle, paid off student loans, car loans, house loans, etc... plus had fun playing in the dirt 😊

[@DirtPerfect]

Welcome glade you enjoy

[@markdoby4276]

I am just starting my own excavation company. I'm starting small and just have a skid steer and a tractor. This was very informative and helpful. I've been renting excavators and dozers as needed. I charge the customer what the rental company charges me if the equipment is being delivered, but if I have haul in the equipment I charge a small delivery fee. I've been offsetting the cost of the rental by charging lower machine hour rates since I'm not maintaining it. I have to remind myself I'm here to make money, not do favors. I'm getting about 65% of the jobs I'm estimating.

[@DirtPerfect]

Awesome and good luck

[@micahwatson9017]

I was told by an old timer "if 100% of your bids get accepted, you're not charging enough!"

[@danagrey3534]

@@micahwatson9017 Well I remember going to look at a job and while it wasn't big, it was a bad one I didn't want! I quickly figured it about $10K to $15K but getting equipment in, hauling off the trash, doing the job.... it was in a bad spot! So I told them $30K off the top of my head to do the thanks but not thanks trick and them thinking we overpriced it. Well, a couple weeks later they were blowing up our company phones and saying we were the lowest bid! LOL I ended up telling them we were backed logged for 3 months and thank gawd! The company that got it hit an old junk fill site with 2-3 2000 gallon fuel or used oil or chemical tanks. They kind of lost their butts on in and with the EPA involved. it was closer to $85K or $90K Everything was contaminated and everything hauled out, good fill hauled back in! I have a lot of those over the years and where we have been smart enough to follow your gut and pass!

[@danagrey3534]

Mark that is just how I got started back in the early 90's with just hand tools, my pick, a set of magnetic signs, 500 business cards basically $50. The funny thing is this. I live in Ohio and went to an extension of OSU for a business degree. My professor held my business plan up in front of the class with a big red "F" saying "This is a prime example of a business that is guaranteed to fail within 12 months!" Yeah, okay, whatever! This is when compact equipment was really just starting to hit the market and gain popularity. The name of my business was CEC for Compact Excavating Company, which all the larger companies in town would tease me and my guys calling us "Tinker Toy Construction". I focused on doing jobs that the big boys didn't want or had too much overhead in with their big equipment to even job these jobs. So, while Mike states in the video he charges $125 for his JD 120, I was charging that for a brand new Bobcat 334 mini and $110 for a Bobcat 773. In my first year (1996... telling my age) we did $125,000 in profit. So if we needed larger equipment, we rented and did the same as you. Of course, I went back to OSU the next year after dropping out and with my business & marketing plans in hand along with my tax return and barged into his class and told him to shove it up to his butt! I finished my degree via correspondence course from Penn State and that is why I hate OSU and their football team to this day! If you find and read back in Equipment World magazine you will find a lot of articles they wrote on my business of how I started with $50 and in 5 years we were a multi-million dollar company doing jobs of $2M to $5M. But running the numbers, we did far better with our compact division than I ever did with the large equipment. It was easily transportable with a pickup or our 1-ton dump and trailers. The guys didn't need CDL's maintenance and repairs along with hourly operating costs were lower. My biggest problem was my ex and her wanting to live the lavish life on the business profits like every couple of years ordering a Chevy 1 ton, 4 door, 4x4, long bed and loaded! That happened once! Thankfully I sold for a hell of a profit at the beginning of 2008 before the economy tanked! Today I have a few other businesses in retail and one in recycling and composting. I also work as a construction inspector for the Ohio Dept. of Transportation. I would encourage you to get involved with your local Chamber of Commerce. Also, get on the Small Business Administration (SBA) website as they have a ton of resources. You can also utilize S.C.O.R.E. (Senior Core Of Retired Executives) which is free and pairs you with older guys like me who can mentor you in the same or close related business field. I found a guy at the time and he worked part-time as my consultant and chief estimator. Made a huge difference if you are wanting to grow as I did. Finance wise, you can also gain info from the SBA on government loans. For example, there are a ton of people who hate Trump, but I did basically the same as he did. I had to get turned down by 3 conventional banks to qualify for an SBA loan, which my first was a $35,000 microloan. I used my ex to say we were a minority business that she controlled 51%. For good measure, I went and got turned down by 10 banks! This loan is what I used to buy the Bobcat 773 skid steer and 334 mini excavator with. I had a 30-year loan at 3% interest! If my business went under, Uncle Sam backed 80% of the loan or $28,000. I would only be responsible for $7000. Of course, that didn't happen and you don't want it too! There are also what is called Small Business Development Centers, which is government-funded, (free or low cost) and starting out, they help with accounting, marketing and a lot of things. This changes over time of what they offer and fund, but worth checking out! I also utilized government auction sites for equipment, office equipment, computers, etc. You do have to watch doing this and make sure you know what you are bidding and buying! But we bought 4 Chevy 3500's, 4X4 with diamond plate aux fuel tanks, toolboxes, and bed rail guards. 2 were 94's and 2 were 96's and the none had over 65K miles. The most I gave was $2600 for the one and they were from the U.S. Forest Service, which we fly out to AZ, loaded them on trailers and hauled them back. They were great trucks! I ended up with Cutting Edge Construction ( the large site development co.) Compact Excavating Company and Compact Equipment Company. The reason for this was tax purposes. Like C. Equipment Co. leased the equipment to C. Excavating Co. and they bid and did the smaller jobs for Cutting Edge Construction. You need a very savvy accountant to pull this stuff off. Aside from a half dozen 1 ton and 2.5. ton single axles dump trucks and trailers, we had 8 Bobcat mini excavators ranging from the 334 to a couple 341's We also had a few 864's when the track skid steers came out. which went to the T190 & T200, etc. series. Also, we had a few 773's Dozer wise, it was used Komatsu D21A's as well as a few Cat D3 B & C's. Backhoes we had 6 Terramite T7 & T9's 4x4's which its hard to find them used today! People knock them but we made a ton of money with them! We had 2 compact Leeboy motor graders. small Kabota tractors for pulling drag boxes, small crude sheep foot rollers, tillers and finish grading attachments. And had a few Cat 920 wheel loaders. Like I said, I couple keep the above equipment working around the clock and 7 days a week if I could and it was more profitable than the big stuff! Have the right equipment for the job. You don't need new, but I bought an older water truck, added a trailer, with a steam cleaning pressure washer, air compressor, and greasing port. I paid college kids in the summer to wash the equipment in the yard or out on site weekly! Have a good PM program for your equipment. Keep it clean even if older (used) the best you can as keep up on the maintenance and you can still get higher rates and make it very profitable. Don't get hooked on the fancy and flashy pickups and equipment! Be smart and it should make you money, not cost you money! I hope this helps everyone on Mike's awesome channel! Think outside of the box and ignore the Nah sayers like my OSU business professor!

[@jamesnull2734]

@@danagrey3534 Thanks for the info. I have been a small equipment guy for 7 years now and can make decent money with my bidding and billing system and small machines. I can move my own equipment and the budgets are small enough that if something goes whacko I don't get hurt. Local supply companies have been a huge help and SBA is helping with some funding. Will use most for escrow money so I don't have to use my own, looking at getting a grader and a mini excavator to lower my prices. Feel free to contact me, could use some advice. Mercy funding of oregon @yahoo.com. Thanks again...😎

[@benjamincurran1365]

Great Video! Great job explaining the bidding thought process for those who aren't in business. It all comes together with experience. Win some and lose some. When you lose you will remember and try to put systems in place to prevent it from happening again. Keep up the good work!!

[@haterofmillennials]

Mike, I used to do earthwork until I broke my back in two places on my way to work one morning. I miss the early mornings and the smells associated with it. There is some special people out there like you that are so honest and hard workers just looking to make enough to live. I wish I was closer to you so I could come watch you live and have a cup of coffee with you because the same as you, I did any job that my equipment would do. Thanks for the great Content as it helps me keep sane with not being able to play in the big sandbox anymore!

[@DirtPerfect]

Buddy a hate to here that about your back glade you are able to enjoy the channel

[@manuelorellana3646]

trying to learn on biding for excavations, I’m actually a concrete guy here in Colorado. I appreciate this video.

[@jbritt2549]

I was thinking about you're talk on bidding jobs. I think you did a great job explaining it. My dad said bidding is something you'll get good at because you don't have to screw up but ounce and you'll remember when you don't have any money

[@TpetPlayr]

Best break down of bidding jobs I've heard! It works the same in construction and I couldn't have said it better. You win some, you lose some. The more experience you gain, the better you'll get at bidding.

[@DirtPerfect]

Thanks

[@jakerawls4727]

I always tell customers that T&M will be the best route, but most still want a bid which gets the CYB fee added. Most contracts if you read through them boil out to be T&M with even the most minor of changes. We have rock clauses and poor soil condition clauses in our contracts to protect us on jobs. I have found it's best to always specify my trucking of materials in the material price and unit base the estimate price to the customer. A unit price bid saved me on a job that ended up needing 750yds trucked out and 300 tns of structural fill brought back in.

[@azwrenchmaster5334]

Appreciate you being so open about your fees. It's not typically something people are willing to share with the world. Anyway, still waiting for the first Valvo video!

[@DirtPerfect]

lol it’s coming

[@teebugg66]

I like your way of thinking, if more people did business like you and I do the world would be a better place

[@DirtPerfect]

Thanks

[@darrenblattner2508]

I was told many years ago, if you get every job you bid on your working too cheap. Your on the right track, cool videos, keep smiling.

[@DirtPerfect]

Thanks and agree

[@maxshepherd6409]

Also in Indiana!! Awesome video extremely helpful for someone wanting to start out on their own !! Appreciate it

[@DirtPerfect]

Thanks max where at

[@leesteele9290]

Never had to try to figure out what to charge ourselves for the work we do , but over the years if we had been hiring you , I think we would be one of your better customers !!! Luckily though only have to please ourselves , because you tend to sweat the finish details more than us !! Thanks for the insight into your thoughts to to fair and profitable !! That job you're working working on is right down my alley and looks like fun !!! Thanks for the video !!

[@pjs5191]

Thanks for doing this video. I’ve got a small landscape company that 2020 will be my fourth year in business. I’m still learning and trying to figure everything out when it comes to bidding and pricing. It’s a learn as you go and learn from your mistakes mentality IMO. I appreciate the knowledge you shared though cause although I’m doing most of what you talked about already, I’m going to save this video for future reference to try and mold and guide me and my growing company. Thanks again and nice video. Love the channel, and Keep the videos coming!

[@DirtPerfect]

Thanks buddy glade if possibly helped

[@bfigym6343]

Wow! Unbelievable. I’m blessed that I ran across you on here! Thank you for the invaluable information. I just started my own Excavation company and hearing you made me excited that I am ready and you made great points. Thank you for this.

[@DirtPerfect]

Glade you found the channel and welcome

[@bfigym6343]

Mr. Mike, I have a couple questions pertaining to percentages and hourly rate! Is it cool to ask you on here or would it be cool to email you to discuss a few things?

[@michaelkoop6731]

Great info Mike thank u. I really in joy watching u thanks a bunch.

[@mikehydroseed1282]

I charge $65/hr to do landscaping labor, I’m flabbergasted at how much guys charge for dump trucks. I own a Ram 5500, so me charging $85/hr is really pushing it but to only get another $20/hr for hauling doesn’t even cover the diesel, registration, insurance and repairs. I really don’t like charging by the hour with my skid steer, Last year I started charging by the yard rough spread at $8/yard and x amount to Harley rake. I feel like there’s a lot of companies that charge by the hour and just milk it. I was able to rough spread 200 yards in one hour because I was in beast mode, that’s $1600. If I was charging by the hour I would have made about $160 plus a delivery fee of the skid steer. I hope to buy my first mini excavator (TB260 or Kubota kx 057-5) this spring and I’ll be starting off almost clueless. I heard some people charge by the 1/2 day to full day. I’m buying a new and demand is high in my area so I’m hoping to get $1000 for a 1/2 day and $1600 for a full day, is that crazy?

[@tomwainwright7102]

Logger says that you and lord Muck have helped him to eventually get back to us,` cos I for one have missed his cheery personality, a big well done to the pair of you.👍👍👍👍

[@StanleyPiatek]

Thank you for sharing with us, it was very helpfull!

[@jamesw95]

Mike I think this was one of your best vids. You have a very practical common sense approach to business in general and yours in particular. Thanks!

[@DirtPerfect]

Thanks

[@casycasy5199]

always learning thanks for letting us know some of the problems you face bidding jobs

[@rogerr1296]

Nice video. Really admire how conscientious you are about your work and how you try to put yourself in other's shoes. I'm currently looking for someone in my area and hope to find someone with your same outlook and ethics. I'm not looking to rip anyone off and not looking to get ripped off. Just want an honest job for an honest price.

[@DirtPerfect]

That’s appreciate that

[@thylacine1962]

These videos are absolutely priceless. Loads of practical advice. Got to appreciate that. 1 question, what would a contractor do if the customer refuses to pay? Any chance of a video covering that subject? No pressure, I understand you have a business to run. Cheers Mike.

[@DirtPerfect]

Thanks and I have never had that problem I guess court

[@briant8848]

Making youtube videos. The perfect excuse for talking to yourself..... Good video keep them coming!

[@DirtPerfect]

Lol thanks

[@amossnowdaharleyman9179]

Variables include local market. Local man here with a 550 series dozer was down to $40.00 an hour before he finally gave up.He did decent work and didn't ride the clock: just "thrifty" land owners. In the same area we also have dirt contractors charging rates similar to yours: those get work on clearing for sub-divisions where the cost is simply passed on to the people who eventually buy the new houses. Some youtubers say they get upwards of $4000.00 an acre for clearing and final rough grade. That won't happen in my area.Ponds are bid by the yard of earth moved: again prices are all over the place.

[@TheHelgadog]

Thanks for all the good information. I always wanted to operate equipment but too afraid to take the risk. I wondered how a person went about charging and or bidding for jobs. Seems like it has gotten tougher with the rise in fuel costs and equipment prices. I really enjoy your videos. Very educational and informational. Keep up the great videos.

[@DirtPerfect]

Thanks Joel

[@inmyimage1081]

Thanks for doing this, pretty much confirmed my expectations so definitely helpful. Won't be building our house for a couple years but saving this one and will revisit in the future. If we aren't in your range might see if you'd be willing to charge a consulting fee to help us understand what we should be looking at so we can try to avoid getting screwed right up front.

[@DirtPerfect]

Yes sir will do all I can to help no problem

[@inmyimage1081]

Dirt Perfect thx 👍

[@awy1977]

Thanks for giving actual numbers on some of your equipment for jobs. Lots of times it's so hard to watch videos on KZbin and actually hear anyone give a real number!

[@DirtPerfect]

👍

[@jackpinnell3204]

Completely agree with everything you said. I'd like to add a couple of points that I feel are important to anyone doing service work, no matter what kind of service it is. !. There are some of my customers I work for on a "hand shake" basis all the time because of a little word called "trust".....I trust they will pay me and they trust I'll do a good job like I have in the past. 2. When you are working a job for "time and material" you are sort of making yourself a sub-contractor to the customer. I have clients that I WILL NOT work for them on a time and material basis because they become the self appointed "time keeper" on the project. 3. I do a comprehensive written proposal for most of my customers and here's why; if it's in writing and we both agreed to it, there are no surprises along the way and when you are ready to be paid. Once the proposal is signed by both parties and a deposit is received, it converts to a contract. 4. In my "terms" on the proposal, the payment schedule is clearly laid out with a deposit, first draw, second draw and so on. 5. I have a category for "delays" in my proposal that takes up about half of a type written page and the reason I do that is to eliminate awkward conversations during the job or at the end.

[@mikehydroseed1282]

I’d love to see that “delays” Section your referring to. That’s my biggest worry on my future excavation jobs.

[@andymoss3132]

I understood you boss. My favorite part is driving in to new places to view the job and meet new people. You told more than I would've tho we are close to same on prices. When I started out I used home depot equipment rental rates and added mobilization fee

[@boward6686]

I have a small excavating company as well in Westcentral Ohio and I think your approach to bidding jobs is very similar to the way I do it! You’ve got to treat the customer fair, but in the end you’ve got to make money! Referrals from previous customers is my bread-and-butter and the contractor that sends you a check every month got to take care of them! Keep up the good work!😎

[@DirtPerfect]

Yup exactly

[@rexhargrove5172]

Excellent video. Thank you so much for taking the time to share this valuable information with us. Much appreciated 👍

[@DirtPerfect]

Glad you enjoyed it!

[@bennapier9260]

Your prices are right on par with what they are here in the south. Your channel has become my favorite.

[@DirtPerfect]

Thanks Ben appreciate that

[@bennapier9260]

@@DirtPerfect I really like your work and personally. You seem like a guy who wants to do good work at a fair price

[@cbboggs6459]

Mike , awesome video. I run my business similar to yours. My equipment rates are close here in . S. E. New England. Example, my 312 excavator I charge on a rental $125/hr. D3 C-LGP $100/hr, and my Bobcat S-220 $95/. I pay my trucker $90/hr.for his ten wheel dump. I took my trucks off the road 10 years ago. However, the difference with my business is I do no do residential work except for the occasional septic. Most of my work is commercial ,agricultural and wetland mitigation.

[@aaronsharp8857]

I'm going to take that rental 312 excavator for $125 an hour and work in the roughest terrain..lol dude its never a set price if you add in factors you will get more money and repair the wear and tare, learn not all jobs are the same.

[@SLCFarms]

Well now im just all confused 🤷🏻‍♂️. So many more questions just not about bidding work haha 😆 you did an excellent job. I always enjoy bidding jobs i find a real talent in that. I owned a successful landscaping business in Charlotte before becoming a farmer and going broke and always enjoyed being a good estimator. I miss it sometimes but still do the occasional bid for farm owners like you do a lot of. I built some roads cleared trees done trenches etc. good vidja bud. Take care.

[@DirtPerfect]

Thanks Brian and learned something new you where a landscaper 😝

[@bertrutledge4546]

Mike, thanks for sharing your bid process. Like you said what works there may not work some where else. Plus you have a great reputation you have worked hard to get and that is worth something. Thanks

[@DirtPerfect]

Thanks Bert

[@jeremypatton80]

Great video. So glad u shared the info, most don't. So many new guys trying to get started in life.

[@DirtPerfect]

👍 hope it helps

[@randycook4364]

I have to explain to folks here you may have to wait to get the good contractors. I always follow the golden rule and leave the place cleaner then when you arrived. ELECTRICIAN

[@boitanoexcavation3564]

It’s definitely eye-opening how different the rates are throughout the country

[@DirtPerfect]

It is

[@danagrey3534]

It's a bit more than that even! Mike did an awesome job with this, but what a lot of people fail to also realize is that no job site is the same and I'm going deep here on this. For example, years ago the city I lived in annexed in a lot of land and the city contracted storm, water, and sewer, which we got in on. But I basically got a whole road to do water and sewer taps and it was just moving house to house down the street. In my area at the time, a water tap was $2500 and the process is pretty cut and dry. However, soil conditions can drastically change in a few hundred yards as Mike said. So this is where the combo bid comes into play. We also did a mass excavating job where we stripped a 25-acre cornfield of topsoil, dug a heck of a borrow pit for clay spoils for a factory building pad, did all the underground utilities of storm, water, and sewer as well as rough and finish grading. It took 9 months to complete. But my point is that on a job that size where you are there for days, weeks, or months, site conditions are never the same! For example, as fall came around, the weather went to crap and we had tons of mud. The factory owner then went with our advice to do soil stabilization with lime and then cement. It was costly, but it was snowing and parking lot base went from 4 feet of mud to nearly dust. When the sub then put the cement to it, wow! We brought the rough grade up from 4 feet of mud to within 6 inches of stone grade. In the spring we went back to get the stone in and you could barely cut it with a grader and scarifiers. The dozers would just break traction and spin. LOL The point on the above example if although we bid per yard on the moving of dirt, per foot on the storm, water and sewer, the plans called for water crossing or running next to some storm or even storm culverts crossing sewer lines. So although we started with the once virgin ground, after it was dug up and moved numerous times. No matter how hard we tried to keep fill spoil piles dry, Mother Nature had other plans! That is how we ended up with four feet of mud. A ton of change orders and contingency change orders on that job! Oh plus on the one corner of the pad, we hit an old creek bed and pond, which we had to undercut it 25 feet and then do controlled fill back up to rough grade! This is where doing niche work like basements, septics, ponds, pond cleaning, open ditching, etc are a hell of a lot easier to bid and do!

[@dedomv11]

I'm starting out with a mini excavator. Thank you for the advice. I'm going to focus on trenching for sprinkler systems cable and plumbing.

[@DirtPerfect]

Awesome wish you the best

[@theninja3492]

How’s that working out for you? I’m thinking of starting out in the same kind of business.

[@dedomv11]

It's been kind of slow. Since January I have only had about three jobs. The jobs were small, couple hundred dollars here and there. Luckily I paid cash for this excavator.

[@dedomv11]

I don't advertise this a whole lot because it's side work after work.

[@quickcreektimes]

Good info Mike! Great video! Excellent content. Im in southern Indiana area as well getting started part time.

[@DirtPerfect]

Thanks and awesome

[@garywest8901]

Golden rule always applies buddy. Build a good reputation will keep you with plenty work. It takes time thou , you got to earn it. Thanks for sharing bud.

[@DirtPerfect]

Agree

[@tbix1963]

Thanks for sharing your process, I always find it interesting how many issues are universal across so many industries. Interesting little job. Take care, stay safe.

[@DirtPerfect]

Thanks Tom

[@kiwidegen]

Just over here waiting for the 1st Volvo video to drop 😂😂😂

[@DirtPerfect]

lol it’s coming

[@leesteele9290]

Rage , I'm right there with ya ! Hahaha

[@joechase1713]

I had to add another asterisk, "Contingent on the cost of materials at the time of construction". At the time I was bidding a lot of additions and in three days time the price of roofing tripled (because of an oil embargo). Other then that I think you methods for bidding are good

[@rayrayslawnlandscape2008]

man - great info for real- im very young in this type of work- i have a little skid steer t190 and pricing is the hardest as i go from lawncare to skid steer type work- i do both

[@Bearclaw_Jake]

You are doing good, just say'n.

[@DJ2CM]

Morning Mike . Thanks for taking the time to share your thought process on bidding work. Alot of people wouldn't do that. I appreciate your experience and knowledge ! It's truely nice to feel that we are someone you would share that with. I believe that a person that will share their knowledge are truly special. When I was leaning my trades some would share their knowledge and others figured it's a secret that you need to learn for yourself. So again Thank you for sharing my friend.and have a great one 😀👍🇨🇦 Craig

[@DirtPerfect]

Thanks Craig

[@SLCFarms]

So true Craig ive always loved sharing and watching others grow.

[@Peterbilt359]

I'm an excavator in Utah. Our rates are about same. 10 wheeler 85, 200 excavator older one 130. 953 loader 100. I try to bid most of time so if on phone or break down it's my dime. Old guy taught me a rule 25 years ago, we like to work for people who spend other people's money. Schools,church, city jobs these are my main customers. I have 2 main generals I stay with and few others work for now and then. If work for someone and take over month to pay usually won't go back unless there really nice and hand me the job. It's booming here so there is plenty work still see guys bid cheap. Hard to find help unless you pay 25 an hour so I have to sub jobs out when I get to many. I have good relationships with about 8 other excavators.

[@f250ford2004]

great video!! Keep doing what you are doing, works for you!!

[@DirtPerfect]

Thanks Toney

[@kapperoutdoors]

Just found your channel, great stuff thanks!

[@DirtPerfect]

Thanks and welcome to the channel

[@CMDSR]

Good job on the way you bid on jobs. I did notice you didn’t say much about equipment relocation.

[@mathtime4578]

Most of bids are based on experience. I'm sure we bid basements differently than most but can bid a complete job in about 20 minutes. That comes with experience knowing the tricks of the trade. Worst thing you can do is spend hours bidding jobs and come up empty handed. Great video.

[@DirtPerfect]

Yup I agree

[@rickb8808]

We found out the hard way how important a good excavator is. When we retired we wanted to put a new double wide on a block foundation on our property in the mountains then push the dilapidated 2 room cabin over. We contacted a contractor to do the block work and pour the basement floor. The place we were purchasing the double wide from wanted the foundation to sit 2 weeks before sitting the home. The home was shipped factory direct in 2 pieces and the Township only allowed the home to sit 1 week on the property not blocked or placed on foundation ? There was only one excavator local with heavy equipment as it was determined rock would be a issue in digging. We sat down with all of our contractors and signed time is of the essence contracts. The excavator dug the septic system and the plumber installed it with no problems. Also trenched for the electrician to run power. The block was delivered and concrete ordered for foundation. We were in the city at that time and the contractor calls and states the foundation wasn't dug as it was scheduled. He was delivering footer forms anticipating the foundation being dug. 48 hours until foundation pour. He stopped at the excavator contractors house and the wife says he got a last minute phone call to go to bike week in Daytona Florida, he will be gone 10 days. I call him on his cell phone and he claims equipment failure. And yes, it stated on contract he wasn't responsible for equipment failure. "MY bad". I race there trying to get someone to dig the foundation immediately. So desperate I went to a local restaurant where contractors frequent, walk in and just announce I need a excavator contractor. They referred me back to mine but when I explained he was in Florida they laughed and said if he doesn't need the cash, he's not real reliable. I call my contractor and trailer place explaining the situation. Basically, I was screwed. The contractor brought his backhoe and ordered a second from a rental place. He literally worked 32 hours straight digging the foundation as it was full of rock. Had a hell of a time with the small machines. A farmer friend he had was certified to blast the rock. So they chiseled away at it slowly. The excavator contractor called when he got back to reschedule but I told him to shove it. He had already been paid for work done. It was my fault to a extent for scheduling on a specific time line but the 3 other contractors involved were fine with it and prompt. My foundation contractor would have just dug the foundation originally, but he knew the terrain and wanted me to get someone in who had the heavier equipment to do it. He really came forward when I needed him though.

[@BentTreeFarmPa]

Two things small businesses need to remember, PROFIT is not a dirty word, your time and equipment aren't free, charge what you and they are worth, if you don't make a profit, you don't stay in business. The company that works cheap, and the customer looking for cheap work will find each other and both won't be happy. Second, Defy to buy, if you are bidding a job you don't want to do, don't turn it, down, just price it so high that if you get it, you will be smiling every day you go to it. Plus you will have enough profit in it, that you can sub out what you can't do, or don't want to do, and still come out on top.

[@lennelonge2626]

Very good explanation Mike! Thanks!

[@eliteearthworksllc]

Great video buddy! All very good points. Appreciate the video

[@DirtPerfect]

Thanks for watching buddy

[@RKHarm24]

LOCATION, LOCATION, Location. You are in a rural area like I am. Prices in our area is lower than in the closest BIG cities like Dallas. Even food, $3.50 for a burger & fries vs $8-$10 in Dallas for a burger & fries, Mexican food too. Contractors around here have a rate like you, but if they tow to Dallas, 50-70 miles they double their rates and get it. Most have 2 sets of equipment. Say the 120 for local work and the 140 for the BIG CITY work. Pay some rent at yard to park them at instead of dragging them back and forth. They are not just starting out either. Like you they have years of experience and have picked up equipment when they can afford it.

[@andrewhill7780]

I’m surprised your d4g rate is lower than your svl90. I thought they would be about the same and possibly the d4 coming in a little higher as it is harder to move?

[@adamnewsome2914]

Great video I always enjoy these videos you make

[@DirtPerfect]

Thanks Adam

[@RockhillfarmYT]

Great video

[@DirtPerfect]

Thanks buddy

[@williammatthews2948]

Sounds very reasonable. Have a blessed and safe week.

[@DirtPerfect]

Thanks

[@BZ1340]

Great insight. Awesome explanation. Only thing missing was the Kleeman surcharge pricing. For damage control. LOL

[@DirtPerfect]

Lol

[@stuckboy22110]

After watching this, I feel that I am doing it right and fair enough! How are people sometimes a lot cheaper is beyond me but like you said, they will bid themselves out and be gone..

[@arnoldromppai5395]

yes new comers come an go all the time, if they are under bidding, they are not around long, so we dont worry about them, it just as fast as one go out another coming in, it stinks but its just how it is, if i bid a job and they take the low guy, it is normally a big mess and they call you in to fix it, now the price is double but under T&M

[@DirtPerfect]

Yup I agree

[@stuckboy22110]

I’m a new comer! So it’s good to know I’m not cuttin my own throat too! I know we all have different costs , labor pay, maintenance...

[@GMBiorn]

Thank you for the information and the clearing video.

[@daniele.woodhead1218]

Don't forget to add 25% for breaking things aka Captain Kleeman lol 😂

[@DirtPerfect]

😂😂

[@toddreynolds8875]

Bout same rates add 10 hr to all yours. Here in northeast. But probly our extra 10 goes to labor stuff. A good operator here base pay is 25/30 hr. Without any goodies added yet

[@mightymoeexcavating754]

Our tax HST 13 percent,use to be 7.ty for sharing

[@MrEdelong]

Exactly! I will come up with a price 2 different ways to see how they compare. Sometimes it tells me if I need to adjust the price or not. And I always ask myself "would I pay that for that job?"

[@DirtPerfect]

Yup good ? For sure

[@green-zone36]

I like to see a machine working. Best when the camera is pointing out of the machine.

[@DirtPerfect]

K

[@randynoble8912]

Wow, things are different than USA to be! Lot more to it!

[@manuelorellana3646]

Thanks for all that helpful information.

[@stuartlafrancis1371]

And always about a Relationships we are treating people like you wanna be treated. We used to do right system when I was working.

[@RiverValleyAcres]

I def hope to break out on my own someday. Looking to buy a mini this year.

[@Turbo-wj9qc]

Good luck to you, and make sure you spend the extra on a cab, I wasn't going to but was talked into it and very glad I did.

[@RiverValleyAcres]

Turbo 2 that’s def my plan. Spent too much time in an open cab machine with no ac or heat. I’ll def hold off til I can afford one

[@Turbo-wj9qc]

@@RiverValleyAcres it's quite a bit more for the cab but resale will be better too.

[@tbirdage]

Great explanation, Mike. So I’m doing a job now ripping out a hillside and hauling off about 20 loads of dirt. I have another customer paying bargain price for it and the dump site is only 3 miles and it’s about a 25 minute round trip to load and dump. Every job is different on bidding for sure.

[@DirtPerfect]

Yes they are

[@magictune7935]

Well said, thanks for sharing!

[@HankinsExcavating]

Glad you touched on reputation, I started low ,did what I said I would do and treated people with respect. Now when people call it's not will I get the job but how much will it cost? They've already decided whose doing the job. Normally I know "gutt feeling " weather they're just fishing or not.

[@DirtPerfect]

Yup in agree

[@stoker7211]

You're awake, spiritually. I heard a reference to karma factored into your calcs. You'll be fine.

[@libertybelllandscaping1757]

Or Christ based. "do unto others"

[@1LostDude]

Being on the Civil Engineering side of things, I can assure anyone that reads these comments, a Contractor's reputation is why they get 99% of the private jobs they bid. We have clients that will pay a GOOD Contractor their "F. U. I'm too busy price" and wait til the Contractor can fit their job into the schedule. BTW, has @letsdig18 paid for the tinting on your new excavator yet?

[@DirtPerfect]

Thanks and no not yet 😜

[@joestro7826]

Thanks you! Really like the interlocking thumb. The solution to all the inferior and cheap thumbs out there.

[@DirtPerfect]

Thanks and agree

[@levicoblentz9032]

Great narrative. I don't think I could have said it better. I basically do the same. Before I have even started the project I've done it or built in my head at least 2-3 times. I guess if that makes you an idiot then welcome to the club. I'm glad you said something about the Golden Rule. It seems to be missing most of the time these days. And that goes for contractors and clients. Keep it up because the world depends on it.

[@DirtPerfect]

Thanks Levi

[@thewhiteknight02]

Those are good rates for rural area and solo operator. About 20-30% higher here in Se Wi. Yea on the reselling we try to buy wholesale as much as possible salt, dirt, mulch, stone.

[@DirtPerfect]

Interesting

[@beachfun2901]

Thanks for this discussion. It amazes me how the bid process works on large jobs especially when a lot of dirt needs to be moved in or out. Where do you get it and where does it go? I know one firm that screens and stockpiles dirt. This helps them get paid on both sides. They also chip trees for mulch as well as sell firewood and lumber. Some firms just burn the wood. I guess it comes down to how much land you have, the size of your market and the equipment you are willing to buy.

[@scottperman6495]

That's what TNT going job sometimes you have to pay cash but ask customer pick cash but then they get some specific tax on your refuel so

[@rgamore]

You proved it Mike, you can not work and talk at the same time. :) Be careful about what you say is taxed and what is not, the tax man has the last word. I would never charge tax on labor, the tax was intended for materials.Labor is taxed when you file your 1099 and pay that tax. Use Tax applied to when you buy equipment and supplies wholesale (non taxed)and used them in your business or personally. The tax man always gets his share.

[@dirthogs6563]

Thanks for the info. It’s a struggle here in central Indiana

[@inmyimage1081]

In what way?

[@dirthogs6563]

InMyImage to much other competition.

[@dirthogs6563]

To much competition

[@inmyimage1081]

Dirt Hogs Thx hope things improve for you

[@gregcothrum4045]

Great video have a great week and stay safe 👍

[@DirtPerfect]

Thanks Greg

[@Crewsy]

Who said we needed any convincing. 😉 😂🤣😂🤣 Great explanation Mike but you didn’t tell us how to account for broken mirrors and grader wheels. 💁🏻‍♂️

[@DirtPerfect]

lol fair point 😜

[@jakesbackhoedozerservice7010]

Good video man I bid jobs pretty much the same way

[@DirtPerfect]

Thanks and awesome

[@CaptKirk1701]

Good explanation, great job!

[@jwg19444]

👍 Good info from a fair minded person.

[@DirtPerfect]

Thanks

[@DC-1]

Great informative video Mike 👍🇺🇸

[@DirtPerfect]

Thanks dc

[@mikez4132]

I refused to do anything hourly. Waay to many clock watchers. My minimums were just added to the job estimate. So a 1hr job with my min was a 400$ job regardless if it took 9mins or 2 hours. Just an example. Every job and circumstance is different of course. Good vid.

[@DirtPerfect]

Do what works for you

[@mikez4132]

Dirt Perfect for sure. Must be my area. Hours make issues lol. Keep up the good work!

[@richardhedrick5601]

You have got a good head on your shoulders to think that way

[@DirtPerfect]

Thanks

[@outlawtruckinginc.5542]

I do basically same thing you do only a little smally scale I've been told time and time agin that I'm y To cheap , but my area l cant charge any more or i don't get jobs, so i can relate you, like videos keep them coming. By the way this Dave i own OUTLAW TRUCKING AND EXCAVATING in central ILL👍

[@DirtPerfect]

Awesome

[@southerndirt9589]

Your 100% right I bid about the same way