Any Owner/Operators?

[Mass-X]

Is anyone here an equipment owner/operator?

I’ve seen a few guys doing this, mostly running blades, excavators, dozers, and even some scrapers. But I haven’t had the chance to really talk to one about their success with the venture.

I know there’s a market for this kind of thing, as a dozer hand, I’ve been subbed out to work for many newer up and coming excavation companies (many of those around here). Or companies that didn’t own a dozer, or didn’t have the skill required for a particular job, paying my employer for the work.

I’ve been seriously considering going this route, so I’d like to talk to some guys who’ve done this. I’m looking at getting a D6R LGP, working as a dozer for hire, finish grading, sloping, etc.

For the guys that are owner/operators, I’d like to know what machine you chose and why?

How do you go about advertising? Which methods are most successful?

Where have you found the most work? Residential developers? Through general contractors?

What did you do about slow times, winter/spring, etc.? How do you keep busy?

What problems have you encountered? What’s been most counter-productive to your success? What would you recommend to some someone who’s looking to go this route?

Thanks in advance.

 

[jmac]

When you say "owner operator" what are you referring to? I know that there is allot of guys on here that own their own excavating company, or are trying to start a excavating company, or have bought a machine and trying to turn that machine into a company. So your question is very vague. If that is the question, I don't think that in this forum you can get all the advise you need to have a successful company, but I do think that in specific area's you can get some very good ideas. The excavating business is like any other business except that the initial investment is quite large. But what makes one guy succeed in his endeavor and another one is just too hard to pin down to 500 words or less. One thing that I can say is bank credit and start up capital is the most important thing you will need to start any business. Hard work, sleepless nights, a good mentor, and perseverance help allot.

 

[Steve Frazier]

Don't sell our members short, jmac.:spaz I'm sure a number of members can offer advice, this is a great topic for discussion.

Mass-X, your success will be determined by you. Strive to be as reliable as possible and do the best quality work that you can and you should not have much trouble finding work.

Your best source of work will be general contractors and municipalities. Develop personal relationships with these people and let them know what you can do for them. Use caution though and research G/Cs carefully, many are well known for stiffing their subs.

A yellow page ad will probably be the only method of advertising you'd want to consider. Don't expect lots of work to come from this though, homeowners just don't do a lot of the type of work you're offering. You're best marketing tool will be word of mouth, and this is dependent on the qualities I listed above.

It's a big move you're considering, and you must be dedicated to its success.

 

[jmac]

Don't sell our members short, jmac. I'm sure a number of members can offer advice, this is a great topic for discussion.

I agree with you on that, if there is anywhere to get the best advise possible on the web, this is the place:notworthy

Some issues to talk about;
DBA, LLC, fed tax id number
insurance, banking, credit
what the first machine to buy or is it a dump truck instead
CDL
were to store your equipment, upkeep on equipment, buying good equipment
getting work, residential or commmercial
getting paid
reading blue prints
writting contracts
hiring help
training help, keeping help, keeping help from getting hurt or killed
paying help, fed,sate tax's,dis,ss,etc.
paying tax's
learning how to do the work
learning how to deal with GC's
learning how to put in progress payment's and retainers

I think that I am just scraping the surface here, lot's more. One thing I do know is that I did it with no past excavating experience at 39 years old, so if I can do it anybody can. :thumbsup One thing I did have before I started excavating was that owned other companys and had some working capital and that helped alot.

I wonder if anyone has wrote a good book on the topic of starting an excavating company?

 

[Mass-X]

I can see how I wasn’t clearer in my explanation, so let me explain.

I’m mainly referencing anyone who owns and operates a single machine, working as a subcontractor, in the heavy industrial/civil sectors of excavating/construction.

The majority of my experience is in this field; highways, dams, golf courses, subdivision developments, etc., and I’m interested in continuing to work in this sector if it’s feasible.

I was mostly curious to see if there is anyone here who works on these sorts of projects, and if so, how did you get started?

How do you advertise?

How do you price these jobs? Straight bids or hourly? Do you have arcing hourly rates, decreasing your rates for longer jobs? Where do you break from hourly rates to a straight bid?

Because most of these larger projects are done by large contractors that can keep most phases of the construction “in-house†what sectors do you find much of your work? The larger residential general contractors?

I have spoken with the local CAT dealer and I qualify for a lease on a D6RIII.

I have a place to keep the machine during down-time, maintenance, etc. As well as keep cutting edges, ripper teeth, etc.

I have a transport company that I’ve worked for before that has reasonable rates, etc.

I have a degree in business management and feel confident to handle the paper details such as incorporation, billing, licensing, bonding, writing contracts, taxes, credit/banking, etc.

I have enough experience with in-field excavation/heavy construction management to efficiently apply a machine in most situations, as well as read plans/blueprints, work symbiotically with other contractors/subs, etc.

Mostly it’s getting started in this business where I’m hung up.

I don’t want to sign the papers on a machine until I have some work lined up, and once I do get some, how do I keep finding more so I don’t end up sitting idle?

Like I said, I haven’t really been able to get in touch with any of the local heavy construction owner/operators who I’m familiar with locally (most are in So. Utah/AZ this time of year) which is why I’m asking here.

Thanks for all help. I do appreciate it.

 

[farmboy555]

I'm a owner/operator. Use to have a backhoe, then a Cat highlift and now a Bobcat with attachments. My thinking with the Bobcat Skidsteer is I move it with my F350 & gooseneck trailer, no semi and all the problems related to it anymore. I'm getting almost the same rate per hour and the boys with the big / heavy equipment. That's it in a nutshell. You can make it with a little luck and a lot of hard work.

 

[Woodstock]

I am an owner/opperator. I am 27 I have worked in the construction field for a while and got my experience. I talked to friends and people about doing dozer work. I thought it would never happen, but one day I got a phone call about clearing. I went a put a bid in on it and got it. Now it was time to get a machine. I had the one in mind I wanted, so I rented it for the first month just to make sure it would work for me. I fell in love with it and bought it. It is a smaller machine A D4G, just because I could move it and didn't have to hire someone. Well that one job led to anoather. Word of mouth and doing good clean job is your best advertisement. I have had my D4 for a little over a year and doing good with it, I also bought a 328 John Deere skid steer about four months ago. I don't have any one working for my yett, maby in the future. I have also put an add in the local news paper and get a few calls from there, and again your best advertisement is the word of mouth. I mostly do land clearing, stock tanks, and building pads, and small drive ways. It might be best to rent it first to make sure things are going to work for you. JMO

 

[mflah87]

I started off with a Case 580C and a Mack B61 six wheeler ripping out driveways on one saturday and paving them the next. Now I have 10 Excavators 7 Loaders 3 backhoes 3 Dozers 3 Bobcats 4 Tractors 2 Tri axles and 3 Tenwheelers. I went through a lot of tough times to get to that and came close to losing it all a few times. I wish I could have kept my first truck and done it all over.

 

[Coastal]

Im 29, I started out in landscaping, and gradually learned that laying sod sucks....so i slowly phased out my employees, and changed my work to machine only. I had an older bobcat skidsteer, and mini-x. The first year of the transition was slowish...I did not advertise other than a couple newspaper ads(which did nothing). This is the 3rd year now, I have new machines, and business is pretty good. If I can keep myself motivated there is lots of work to do! In winter i am keeping really busy with snow removal this year...im going out tonight too as we're getting more snow :bouncegri

Most of my work is repeat customers, and the rest through word of mouth...it really makes the advertising budget low.

With all my machine purchases I had the same feelings of "should i buy it? what if theres no work?" But ya know...its always worked out for me. Sometimes you just have to jump in and take the risk...or you'll never do it.

 

[Ford LT-9000]

I used to be a owner operator doing light trucking with 1 ton truck I pretty well gave that up not enough money in it. Many of the local excavation contractors are getting tired and are at the point of putting everything up forsale and getting out of the business. They are getting tired of fighting the people trying to get paid for the jobs.

Many of them I know say to me stick with what you got which is working for the gov't. You will have a pension and you know where your paycheck is coming from. They also say when this boom goes bust you will still have a job and many will not. I have been asking them about going into the excavation business.

One of them says he can't figure out why some of these guys are :Banghead he is seeing the 90s all over agian a little short boom guys start spending money and end up loosing money.

Right now British Columbia's economy is running on hype there is no sustainable industry. The construction and realestate isn't a sustainable industry. My area has already seen the flop so anybody that has tried jumping into the excavation business thinking its going to easy are going to be suffering a little.

One of the guys I went to school with has been struggling with his mini excavation company he has been at it for 2 years now. I think its been a tough go for him because this is a very very tough market to get into. There isn't enough work for the amount of contractors doing the jobs. Everybody and his dog has a mini excavator fighting for the same jobs. Most of the developements now are done by one contractor so they don't share the work.

Regular residential work isn't as much as it used to be as everything is gone to gated community developments.

So I think I'am making the best move I know when my paycheck comes I have no real stress and when the boom does bust I will be still collecting my paycheck. I would rather running equipment but there is no future in that and no pension. In 30 years when I retire I will have a pension many people will not. In 30 years from now old age pension will be non existant.

 

[Coastal]

I used to be a owner operator doing light trucking with 1 ton truck I pretty well gave that up not enough money in it.....

Jeez what a downer! I was looking at getting a government/longshoreman job...but I make way more doing this even if it isnt as busy. If I can get my machines paid off in the next few years...I should be just fine when our boom slows down.

Pension would be nice, but I couldnt handle the monotony of working for someone else.

 

[Ford LT-9000]

Oh I hate ever minute when I'am working at my gov't job it is so so boring the only thing that makes me go to work is think about the money. I would rather be getting dirty and working self-employeed but you have to do jobs you don't want to do.

The work going on here right now is only going to expect to last maybe another 2 years. After that who knows our economy is very dependant on realestate sales and retired people moving to the area. Our house prices are still cheaper than Vancouver but it is out of reach for my generation 20-30.

Vancouvers economy is running on the realestate market too and the gov't spending millions on the 2010 winter olympics that will drive B.C. so far into debt it will take the next 20 years to pay it off. I think anybody that is in the excavation or construction business is make as much money as you can now get things paid for. There are so many people out there now that are on if they get sick for one day and miss a day of work they can't afford it because 90% of their pay check goes to paying bills and house payment.

I definatly don't want that stress if these people can't make their house payments the bank repo's their house and they join B.C s homeless problem.

 

[IronFlyer]

I don’t want to sign the papers on a machine until I have some work lined up, and once I do get some, how do I keep finding more so I don’t end up sitting idle?

Mass-X, what did you end up doing? How did it work out? I'm in the position now that your were in a couple years back, it would be easy to sign on for a machine and I know I have some work, but not knowing if it is enough in this turbulent economy is what's got me looking 3 times before crossing the road.

 

[Colorado Digger]

as an owner operater there is so much to do that i end up deciding what comes first. for me family is #1 after that is work. i don't believe in keeping the gu thenys away from their families for long periods of time but deperate times call foe desperate measures. our rule is we rent a house or hotel if it's more than 100 miles one way. i like the diversity of being an owner -operater as some days u start in the office working on spreads and financing- bidding and all that happy ----.then run a few loads of screened rock or base, move a tractor, load trucks- fix a tractor- run to the pipe shop. load some more trucks, head to the stockpile area, hop in the dozer, push it off so we are ready for the next day. every time i have tried to grow and hire an estimater or super it nver works out. being top heavy in the office or bottom heavy with more help of iron is a quik way to get turned upside down. it seems like these days more of time is spent trying to collect money and working on lien paperwork then running a tractor. i believe any good operater can start an excavation business but if u have poor communication skills with your clients or vendors it will not work. thanks

 

[zhkent]

Mass-X,
Never depend on money you haven't collected and always be prepared for all your bills.

 

[Mass-X]

IronFlyer: "Mass-X, what did you end up doing?"

When I made this post, I was 8 months into a Joint Venture project with Granite Construction, with quite a bit more time with them to finish the earthmoving on the project. To make a long story short, I didn't like working with that particular bunch of Granite Construction personnel. At all. I was so sick of it, I wanted out but was told I wasn't going to get transferred anywhere, I was sticking with the scraper crew. At the time, I liked the looks of the owner/operator route.

Granite decided to move the last 7.4 million yards on the project with their own scrapers, and I've never been happier to let someone elses equipment come finish my job.

So I ended up staying where I was at and advancing my career in construction management. I got lucky.

About the same time I was contemplating the idea, a friend of mine leased his own 140H and went out on his own. He was doing well grading in front of a paving crew doing residential developments, until the bottom fell out of that. He's now back to working for Ames, but owes a pretty good chunk of money on the blade he'd leased but couldn't pay for during the last few months of his lease. So I'm glad of the outcome of the situation for myself.