Find qualified excavation contractors

Excavation work can be hazardous. To protect yourself and your business, be sure the excavating contractors you hire are licensed, insured, and bonded. Be sure the excavation contractor you hire is fully aware of and able to comply with all OSHA regulations pertaining to commercial excavating contractors. Excavation is a high priority for OSHA, and it is likely that if your project is large, your job site will be inspected.

I recommend: An excavation contractor directory such as thebluebook.com which presents excavating contractors by state with individual profiles of each contractor that include their contractor’s license number, affiliations, certifications, and examples of recent projects completed. EveryContractor.com also has referrals to prescreened excavation contractors in your area.

Get at least three written bids from excavating contractors

A good bid should include a detailed materials list with specifications, labor costs, specific time frame of your project, and a payment schedule. Professional excavating companies will address issues that could delay completion, such as bad weather.

I recommend: BidClerk and WeDoItAll.com  provide free bids from contractors in your area – usually within hours.

Verify that your excavation contractors are licensed, insured and bonded

Insurance and bonding is important since excavation work is often hazardous. Confirm that your contractor has General Liability Insurance to cover any damage that might occur to your property, Workers Compensation Insurance to cover excavation contractors or any employee of the excavation business who might be injured while working on your property, and Bonding to protect you if the excavation business is unable to complete your project. Ask to see your contractor's state or local contractor's license, Certificate of Insurance, and Certificate of Bonding.

I recommend: The Contractor’s License Reference Site connects you to your state's contractor license board. In general, the Secretary of State’s Office in each state is responsible for contractor licensure. DoItYourself offers a similar service, allowing you to search for contractor license and registration information by region of the country.

Research the excavating contractor's safety record

Since excavation contracting is one of the most hazardous construction trades, it is important to be sure any contractor you consider has an excellent safety record. Ask your excavation contractors how many accidents their company has been involved in.

I recommend: OSHA has a website that reports violations and fines. Enter the Standard Industrial Classification (SIC) Code 1794 for excavation contractors in the “SIC” space, and you can search by your state to see the violators. This tool can help you determine if any of your potential excavation contractors have a history of OSHA safety violations or any current outstanding fines. The Better Business Bureau allows you to search for complaints filed against a contractor's company and provides a ranking of consumer satisfaction.

Get a written excavating contract

A well-drafted contract is essential when hiring excavation contractors. For larger projects, I would recommend hiring a lawyer to draft your contract or to review any contract presented to you.

I recommend: Legalzoom.com and FindLegalForms.com both sell prepared contracts based on the laws in your state. The sample contract forms from 411HomeRepair.com and ServiceMagic show the elements that should be included in your contract. The New York City Department of Consumer Affairs also has an excellent contract form that may be modified to suit your project.