Posted by Pops1532 on February 01, 2013 at 11:37:23 from (68.58.114.55):
In Reply to: Backhoe rate posted by pat sublett on February 01, 2013 at 10:18:39:
Pat,
Before you do any work for anyone else you better get business liability insurance that covers excavating!!!!!
I know a guy that hit a buried Western Union cable back in the early 60's. They charged him something around $3500 an hour until the damage was repaired! That was 1960's dollars. That should get your attention.
Check to see if you need a contractor license and what the requirements are. There will likely be minimum insurance requirements ($1million liability coverage is required here), and possibly a bond ($10K bond required here costs $75 a year). Then there's the cost of the license itself ($100 annually here). If you have a laborer you'll need proof of worker's comp insurance. You'll also have other employee related overhead like unemployment insurance.
Here a county license is required and some municipalities have their own licensing requirements. The cost of getting caught without the proper license and insurance is $10,000 here.
Chances are if you're going to do backhoe work you'll need a dump truck and of course a trailer to haul the hoe. You'll need a CDL.
You'll need a laser or transit.
IMO it's not worth the financial risk to do that type of work without being properly insured. What do you suppose it would cost you if a kid was playing or just nosing around where you were working and got injured by your equipment or buried in a trench you were digging?
As for your question....
Several factors come into play....
Size/capabilities of the machine
Capabilities of the operator
What the competition is charging
Travel
Scope of work
In my area $85/hr on the low side, $135/hr on the high side for a TLB. I would expect to pay an hour for travel unless it was a big job. If it was a big job they wouldn't bring a TLB, they'd have an excavator.
IMO people are asking you to do backhoe work for them because they don't want to pay the going rate for a legitimate contractor.
I'd find the guy that's been in business in your area the longest and see what he charges. My guess is he'll be among the highest in price for your area. The cut rate guys fold as soon as the going gets tough. Once you know what the market will bear you can calculate your costs for insurance,fuel,maintenance,wages,licenses,bond,and the return on investment and see if you can work for others safely and profitably. Talk to your account about it. Talk to a lawyer about how to protect yourself from liability. Chances are they will both advise you start an S Corp.
All things considered I doubt it will be worth the effort.
I'm a contractor. I have a Ford 555 for my own use on my own property only. When I need backhoe work done on a customer's property I hire a licensed and insured contractor and require a certificate of insurance.
In case you think you can fly under the radar think again. When you call to have the utilities located, they also notify the appropriate building inspector. Things will get expensive then.
This post was edited by Pops1532 at 11:43:47 02/01/13.
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