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View Full Version : average hours charged per week in excavation business


propwash
01-24-2005, 07:18 PM
Hello all. I am crunching numbers pertaining to a small one man excavation business but don't have any idea how many chargable hours per week to use as an average. I know for sure there will be many hours of job estimating, repairs, transporting and unloading that can not be charged for. I know that excavation work is a little off the beaten path here but it seems like a few of you are into that as well. Thanks

Kevin

J Hisch
01-26-2005, 08:50 PM
yes you can charge for the loading /transporting. Either you charge a delivery fee or figure your time and put it into your hourly rate. example figure out you need and over head and what you want to clear working approx 40 hrs a week and include the total hours. and come up with what you need to chrage for your hourly rate.

5000.00 total expesnes

40,000.00 salary meaning you need to clear 55,000.00 minimum but I would attmept to clear 75,000 plus for cash for capital reinvestment. Just a quick senario. 10 month working year 1600 working hrs. divide 1600 into 75,000 gives you 46.87 per hour needed to make the above budget. so for 6 billing hrs in a day you would need to charge 62.50 per hr while on the job. to make your average of 46.87 and to be getting paid when you are doing all the other stuff. Only charging when you are working for someone puts you into bankrupcy.

propwash
01-26-2005, 10:05 PM
Thanks for your input. I understand your equation. It makes good sense. Do you feel that 6 billable hours for an 8 hour work day is accurate? It seems to me that if you factor in equipment payments, insurance , fuel, tires, registration fees and equipment maintenance you will have a much higher expense than 15,000. I am using a figure of 39,500 which includes 18,000 for equipment payments, 2500 for insurance, 11,500 for fuel, 7500 for repairs, maintenance and misc.Do these figures seem in the ball park to you? Thanks again for your input.

Kevin