Excavation Contractor Production Rate Job Costing

JOB COSTINGCASH FLOWWIP REPORTINGFRACTIONAL CFOOVERHEAD RATECONTROLQOREJOB COSTINGCASH FLOWWIP REPORTINGFRACTIONAL CFOOVERHEAD RATECONTROLQOREJOB COSTINGCASH FLOWWIP REPORTINGFRACTIONAL CFOOVERHEAD RATECONTROLQOREJOB COSTINGCASH FLOWWIP REPORTINGFRACTIONAL CFOOVERHEAD RATECONTROLQOREJOB COSTINGCASH FLOWWIP REPORTINGFRACTIONAL CFOOVERHEAD RATECONTROLQOREJOB COSTINGCASH FLOWWIP REPORTINGFRACTIONAL CFOOVERHEAD RATECONTROLQORE

TL;DR: Excavation job costing by soil type and depth reveals production rate variance that blended totals hide. A job estimated at 280 CY per day in sandy loam at 8-10 feet may run at 190 CY per day due to rock at 7 feet. Without cost codes by soil type and depth that variance is invisible until closeout. SPM builds ControlQore cost codes aligned to the excavation estimate structure so actual CY cost posts weekly against estimated unit price.

The Problem

Three Ways Excavation Contractors Lose Margin

Blended CY Cost Hides Soil Type Variance

Total excavation labor for the week divided by total CY moved gives a blended cost per CY. But common excavation at 8-10 feet ran at $6.20 per CY and fractured rock at 7-9 feet ran at $22.40 per CY due to equipment change and production rate drop. The blended rate of $9.10 per CY does not trigger any action and does not identify the rock as a changed condition.

Rock Discovery Not Documented as Changed Condition

The geotech showed uniform sandy loam to 12 feet. You hit fractured rock at 7 feet across 30% of the excavation area. Equipment productivity dropped 65%. You documented it in daily reports but did not file a written changed condition notice within the contract period. Six weeks later you have $52,000 in additional machine time absorbed into the job with no change order.

Equipment Idle Rate Not Tracked by Machine

An excavator sitting on a job waiting for utility conflicts to clear is still depreciating at $4,200 per month. Without cost codes by machine the idle rate disappears into blended equipment overhead. At 55% utilization that excavator generates $1,890 per month in idle cost that is either in the overhead rate (if the overhead rate was calculated correctly) or absorbed from job margin.

The Fix

How SPM Fixes It in 60 Days

ControlQore cost codes by soil type and depth. Topsoil stripping, common excavation by depth band, rock excavation, structural excavation by structure type. Each cost code maps to the corresponding category in the excavation unit price estimate. Actual CY cost per day posts against estimated unit price weekly. When rock is encountered the cost code for rock excavation accumulates separately - visible and quantifiable for the changed condition change order.

Changed condition notice filed within the contract period. When soil conditions differ from the geotechnical report SPM files written notice to the GC within the contract period - typically 48 hours of encountering the condition. Photograph documentation before rerouting or alternative methods. Machine logs showing production rate drop. Cost proposal within 48 hours. Most excavation contracts have differing site conditions clauses that entitle recovery when conditions differ materially from the geotech.

Equipment cost codes by machine with utilization tracking. Each excavator, dozer, and compactor tracked to its own ControlQore cost code. Monthly: actual billable hours versus available hours equals utilization rate. Equipment below break-even utilization triggers a redeployment decision. The overhead rate includes all equipment carrying costs so idle rate is funded by bids rather than absorbed from job margin.

FAQ

Frequently Asked Questions

How should excavation contractors set up job costing?

Job costing by soil classification and depth band in ControlQore: topsoil stripping, common excavation by depth band (0-6 feet, 6-10 feet, 10-14 feet, 14+ feet), rock excavation, structural excavation by structure type. Each cost code maps to the corresponding unit price category in the estimate. Actual CY cost per day posts weekly against estimated unit price.

What causes excavation production rates to fall below estimate?

Four consistent causes: soil conditions that differ from the geotechnical report (rock, groundwater, buried debris), utility conflicts that stop production while rerouting is coordinated, equipment breakdowns that reduce daily production capacity, and weather delays that make soil conditions worse than estimated. Each is a potential changed condition change order if documented correctly at occurrence.

How do excavation contractors document changed conditions?

Written notice to the GC within 48 hours of encountering the condition. Photograph documentation before any rerouting or alternative methods. Daily machine logs showing production rate before and after the condition was encountered. CY impact calculation. Cost proposal within 48 hours of the notice. Most excavation contracts have differing site conditions clauses that allow recovery when conditions differ materially from what the contract documents described.

What is a good production rate for excavation contractors?

Common excavation in sandy loam at 6-10 feet: 220-320 CY per day per excavator depending on haul distance and dump cycle. At 10-14 feet: 180-260 CY per day. Rock excavation: 40-90 CY per day depending on rock hardness and equipment. Structural excavation: 80-150 CY per day. These ranges are starting points. Your actual production rates from ControlQore job cost history are more accurate for your crews and market.

Production Rate Job Costing forExcavation Contractors.