GRADELINE field guide
The excavation contractor hiring checklist
25 checks to run before anyone puts a bucket in your ground: permits, licensing, insurance, the bid, the contract and the job site.
By GRADELINE Editorial TeamUpdated 7 min read
How to hire an excavation contractor
- Write down the scope and ask your building department which permits apply.
- Verify the state license and get a certificate of insurance from their agent.
- Check detailed reviews and past jobs that match yours.
- Compare at least three line-item bids, including the rock clause.
- Sign a written contract with milestone payments and lien waivers.
- Confirm 811 marks before digging and walk the site before final payment.
Phase 01 · 4 checks
Before you call anyone
Ten minutes of prep makes every bid comparable and keeps surprises off the invoice.
List what needs to happen: dig a foundation, clear a lot, cut a driveway, trench for utilities, fix drainage, dig a pond. Note rough dimensions and any plans or site drawings you have. Contractors can only bid what they can see.
Ask: “Can you bid from this scope, or do you need to walk the site first?”
Pull your plat or survey. Know where setbacks, drainage easements, septic fields and your neighbors' lines sit, so nobody grades onto land you don't control.
Ask: “Do you need stakes from a surveyor before you start?”
Grading, excavation, driveway, tree removal and stormwater permits vary by city and county. One call tells you what applies before bids come in. In the U.S., construction that disturbs one acre or more generally also needs NPDES stormwater permit coverage.
Ask: “Which permits will you pull, and which are on me?”
Heavy equipment needs a path in, room to turn and somewhere to stage. Excavated soil either stays on site or gets hauled off, and hauling is often a meaningful part of the price.
Ask: “Where will spoils go, and is haul-off in your number?”
Phase 02 · 6 checks
Vet the contractor
Licensing, insurance and a track record on jobs like yours. Check these before you compare a single price.
Licensing for excavation and site work varies by state, and some places license only at the city or county level. Look the company up on the licensing board's own site, not just the number on the truck.
Ask: “What's your license number, and which board issued it?”
You want general liability and workers' compensation at minimum. Ask for the certificate to come directly from their insurance agent with you listed as certificate holder, so you know it's current.
Ask: “Can your agent send a COI naming me as certificate holder?”
A crew that digs pools every week isn't automatically right for clearing a sloped lot. Ask for photos, addresses or references from work that matches your soil, slope and scope.
Ask: “When did you last do a job like this, and can I see it?”
Look for reviews that name the job type, the crew and how problems were handled, and check whether the owner replies. Detailed, recent reviews tell you more than a high average from a handful.
Ask: “Which recent customer would you want me to call?”
A tight backyard needs compact equipment; a multi-acre clearing needs dozers and haul trucks. Ask what machines they'll bring and how they'll get them in.
Ask: “What equipment will be on site, and how will it get in?”
Clay, rock ledge, high water tables and sandy soils all change the job. A contractor who works your area regularly knows what's under the topsoil before the bucket finds it.
Ask: “What do you usually hit digging around here?”
Red flags
Walk away if a contractor...
- Wants cash only, or a large payment before any work starts
- Won't put the scope and price in writing
- Can't or won't produce a certificate of insurance
- Suggests skipping permits or the 811 call
- Bid is far below the others with no explanation of what's left out
- Pressures you to sign today
Phase 03 · 5 checks
Compare the bids
The lowest number is only the lowest if every bid covers the same work.
Hand every contractor the same written scope so the numbers line up. If one bidder adds or drops work, ask the others to price it the same way.
Ask: “Is there anything in my scope you'd do differently?”
Mobilization, excavation, haul-off, fill import, compaction, erosion control and restoration should each be visible. Line items are how you compare bids now and price changes later.
Ask: “Can you break this out by line item?”
Hitting rock, buried debris or soft soil is one of the most common reasons excavation costs change. A good bid says what happens then, usually as a unit price per cubic yard or per hour.
Ask: “What's your rate if we hit rock or bad soil?”
Someone has to contact 811 before digging so underground utility lines get marked. It's free and required under state law. Put in writing who places the ticket and who pulls each permit.
Ask: “Will you place the 811 ticket, and when?”
Ask for a start window, days on site and what happens after rain. Wet ground can stop earthwork for days, and you want to know whether the price or the date moves.
Ask: “How do rain days affect the schedule and the price?”
Bid comparison sheet
Print it, fill one column per bid, and the gaps show up on their own.
| Line item | Contractor A | Contractor B | Contractor C |
|---|---|---|---|
| Total price | |||
| Mobilization | |||
| Excavation | |||
| Haul-off and spoils | |||
| Fill import | |||
| Compaction | |||
| Erosion control | |||
| Cleanup and restoration | |||
| Rock clause rate | |||
| 811 and permits handled by | |||
| Start window | |||
| License verified | |||
| COI received from agent |
Phase 04 · 5 checks
Get it in writing
A one-page contract that matches the bid prevents most of the arguments that happen on dirt jobs.
The contract should describe the work in the same terms as the bid: depths, elevations, areas and what's excluded. Attach site drawings where you have them.
Ask: “Can you attach the site plan to the contract?”
Tie payments to finished stages of work rather than calendar dates. Be wary of paying a large share before equipment shows up; some states cap up-front deposits, so check yours.
Ask: “What milestones trigger each payment?”
Any change to scope or price gets written and signed before the work happens. That protects both of you when the rock clause kicks in.
Ask: “How do you handle change orders?”
In many states, unpaid subcontractors and suppliers can place a lien on your property even after you've paid the contractor. Ask for a lien waiver with each payment.
Ask: “Will you provide lien waivers with each draw?”
Spell out what the site looks like when the crew leaves: debris removed, ruts repaired, topsoil spread, seed or straw down. Otherwise "done" means whatever the crew decides.
Ask: “What will the site look like on your last day?”
Phase 05 · 5 checks
On the job
The last five checks happen with boots on the ground.
Paint and flags on the ground mean the 811 ticket was placed and utilities responded. No marks, no digging.
Ask: “Can you show me the 811 ticket number?”
Silt fence, inlet protection and a stabilized construction entrance go in before major grading, not after the first storm. Local permits often require them.
Ask: “When does erosion control go in?”
For homes, the International Residential Code (R401.3) calls for the ground to fall at least 6 inches within the first 10 feet from the foundation, where the site allows. Your local code may add to this.
Ask: “What's the finished grade at the foundation?”
Fill under slabs, footings and driveways should be placed and compacted in lifts. On many projects an engineer or testing lab checks density; ask whether yours requires it.
Ask: “Will fill be compacted in lifts, and who tests it?”
Walk the job with the contractor, check it against the contract, and collect the final lien waiver before the last check goes out.
Ask: “Can we do a final walkthrough together?”
Common questions
How much does excavation cost?
It depends on the volume of soil, site access, soil type, haul-off distance and local rates, so the only reliable number is a bid from a local contractor who has seen the site. Line-item bids show you where the money goes.
Do I need a permit to excavate on my property?
Often, yes: for grading, driveways, retaining walls, land clearing and stormwater. Rules are set by your city, county and state, so check with the local building department before work starts.
Who is responsible for calling 811?
State one-call laws generally put the duty on whoever is digging, which is usually the contractor. Confirm in writing who will place the ticket.
What insurance should an excavation contractor carry?
At minimum, general liability and workers' compensation. Ask for a certificate of insurance sent directly from their agent with you as certificate holder.
How long does an excavation job take?
Small residential digs can wrap up in a day or two, while land clearing and site prep for a new build can run for weeks. Weather, soil conditions and permitting drive most delays.
Sources
- 811 Before You Dig, Common Ground Alliance, 811beforeyoudig.com
- International Residential Code, Section R401.3 Drainage, codes.iccsafe.org
- EPA, Stormwater Discharges from Construction Activities (NPDES), epa.gov/npdes
This checklist is general guidance, not legal advice. Licensing, permit and lien rules vary by state and locality; check with your local building department and state licensing board.
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