Why every builder underprices sitework in a new region
Excavation, drainage, retaining and site clean. Together they are usually 4 to 7% of the contract. Builders almost universally get them wrong on the first job in a new region. Here is what to actually budget.
Sitework is the line item that ruins more first-region builds than any other. Frames are easy to estimate. Cabinetry is easy. Roofing is easy. Sitework is the one that hides.
When estimators talk about sitework they usually mean four things bundled together: bulk excavation, stormwater/sewer connection, retaining walls, and site clean.
The first job in a new suburb is the job you make mistakes on. The trick is to price it like you have already made them.
Written by
Nathan Holloway
Founder · BuildHawk and Hawktress
Related articles
See allThe geo-report gap: why sitework eats margin between bore holes
A geotechnical report tells you what is at three or four points on the site. Builders who price sitework as a locked sum are pricing those points as though they represent the entire allotment. The gap between bore holes is where margin disappears.
Variation Control: The System That Removes Discretion
A builder can price a job accurately, manage trades well, and still finish in the red. In most cases, the cause is the same: variations that were completed but never properly controlled.