If you’re getting started in underground utility work, bidding these projects can feel like a massive puzzle with a thousand pieces that need to fit just right. But it doesn’t have to be overwhelming—it’s about knowing what to watch for and understanding the key elements that can impact your cost and profitability. Let’s break down some of the most important considerations when bidding on underground utility projects.
1. Understand the Specs and Local Requirements
First things first: know your specifications. Each municipality has its own rules, and these specs will dictate what materials you use and how you perform your work. They can really change how the project goes—impacting everything from the type of pipe to the backfill method. For instance, you might be expecting to use one type of material, but the municipality may require something entirely different. You want to be on the good side of the inspector, not fighting over what’s acceptable. A lot of headaches can be avoided by getting familiar with the local standards and having a good relationship with the inspector on-site.
2. Ease of Access and Site Conditions
Next, consider the jobsite’s accessibility. This is a big one. Are you working in an open area, or is it a congested site with other contractors working on different scopes? The ease with which you can get your crews, equipment, and materials in and out will have a major impact on your bid. If the site is tight, you might have to store materials offsite and bring them in as needed. This takes extra time and logistics—both of which add to your costs. So, assess the site layout carefully before you put your numbers together.
3. Materials and Cost Variations
The type of materials you’ll need is another critical factor. For example, you might think PVC is acceptable for a certain job, only to find out that the specs require ductile iron, which can be 20 to 50 percent more expensive. Make sure you’re clear on what materials are approved by the district or the general contractor. This could be the difference between turning a profit and taking a hit.
4. Backfill Specifications
When it comes to backfill, you have to know what’s acceptable in the areas you’re working in. Are you in a parking lot or a paved area? That matters. If you’re able to use compacted spoil material for backfill, you’re in luck. But often, in paved areas, you’ll need to use 100% stone backfill, which can get costly—especially when stone is over $28 per ton. Depending on the size of the job, you could need thousands of tons of stone. This is where understanding the requirements and factoring in those costs is crucial so you don’t underbid.
5. Coordinate with Your Suppliers
Another key point Jeff brought up is to make sure you’re on the same page with your suppliers regarding material specifications. Sometimes, you’ll submit materials for approval, and they’ll get the green light, only for a different brand to show up on-site due to availability issues. This has been particularly common recently, with supply shortages affecting everything from pipes to meters.
You have to be careful here. Even if one brand is just as good as another, the municipality might have specific preferences—Ford, Mueller, American Pipe, etc. If you install something that isn’t approved, they might catch it after it’s already in the ground, which means digging it back up and replacing it. That’s a nightmare scenario that can blow up your costs. So, when you place your order, be explicit about what you need to stay compliant with what’s been approved.
6. The Submittal Process
The submittal process is one that every underground contractor needs to understand thoroughly. When bidding a job, you’ll typically get a quote from your supplier based on their familiarity with the district you’re working for. Then, you submit that package to the utility district for approval. They’ll either approve it as-is, approve it with some changes, or reject it. If changes are needed, you’ll need to get back with your supplier to make the necessary adjustments.
Sometimes those changes mean additional costs, and depending on how you bid the job, you may end up eating those extra expenses. It’s all part of the back-and-forth that comes with getting the right materials on-site.
Wrapping Up
Bidding underground utility work isn’t just about getting the lowest price; it’s about getting the details right from day one. Understanding local specs, knowing your site conditions, anticipating material requirements, and maintaining good communication with suppliers are all key to a successful bid. Jeff Spencer put it well when he shared that the process can be complex, but with the right preparation, you can avoid the big pitfalls.
So, before you put your numbers together, take a close look at all these factors. It’ll save you a lot of trouble down the line—and make sure you’re not just landing jobs, but landing profitable ones.