Budget is the Achilles heel of every underground utility project. You might be opening a couple hundred feet of pipe trench or trenching utilities for several miles. Either way, staying in budget is critical to project success and profitability. Unfortunately, over-budget construction projects are all too common, hopefully not on your construction site.
A 2017 Science Direct article reported that on average, gas and public oil projects overspent their budgets by 18%. More recently, in 2024 the Mountain Valley Pipeline project in West Virginia closed at $10 billion. This was 286% over the original $3.5 billion budget.
Utility projects go over budget for a variety of reasons. Physical obstacles and obstructions such as hidden utility lines and terrain issues may impede your pipeline trencher. There could also be environmental regulations to deal with or supply chain disruptions.
Much of this is out of your control. However, there are factors you can control. Here is a list of eight things you can do to better ensure a profitable utility trenching project that stays within budget.
#1. Accurately Estimate Project Costs
Break down every project into labor, equipment, materials, and overhead. Keep in mind that the equipment and processes you plan to use directly affect your project costs.
For example, an asphalt grinder is an additional piece of equipment. However, using asphalt grinding instead of sawcutting for asphalt removal can save up to $10,000 per every 100 feet of utility trench opened.
Asphalt grinding not only replaces sawcutting, but also all of the chunking, loading, hauling, and asphalt disposal. The best asphalt grinders also produce asphalt millings equivalent to spec-comparable base material that can be suitable for trench backfill.
#2. Invest in the Right Equipment
Owning the right asphalt grinding equipment can reduce rental and subcontractor costs. A portable asphalt grinding machine dramatically decreases the time it takes for both asphalt removal and surface milling. This lowers overall project cost and produces high quality results.
Consider the ROI of any asphalt grinding machine or pavement grinder as part of your decision making process. For example, a skid steer asphalt grinder might be significantly less expensive than a self-powered compact asphalt milling machine. However, it is also far less productive for grinding asphalt. The right equipment can quickly pay for itself with increased speed and production on your current jobs.
#3. Prioritize Preventative Maintenance
Maintaining your heavy equipment takes extra time on and off the job site, but it pays off long term by avoiding downtime. Preventative maintenance on asphalt milling machines includes examining cutting bits and blocks for wear and replacing them as needed. Daily greasing and checking fluid levels also helps to maintain optimal performance.
#4. Standardize Material Costs
Purchase commonly used materials like pipe, asphalt, and gravel in bulk whenever possible. This can help lock in pricing and reduce frustrating cost fluctuations. Along with material costs, don’t forget you can also use your asphalt millings for trench back fill.
An asphalt grinding machine produces recycled asphalt millings from the asphalt surface that is spec-comparable road base or trench backfill. You can also use these millings as road base material on road reconstruction or asphalt paving projects. This saves additional material costs and also helps avoid asphalt disposal fees.
#5. Train Crews for Efficiency
A well-trained crew is vital for project efficiency. For example: say you are milling the top layer of asphalt before installing a recessed trench plate. Some equipment is easier to learn and operate. Portable asphalt grinder attachments have easy-to-controls and gauges that make asphalt grinding and surface milling simple and intuitive. They also provide precise cutting depths with variable hydraulic depth control. Numerous project managers report that their crews love their asphalt grinder for this reason.
#6. Diversify Service Offerings
When you aren’t utility trenching, you can use your equipment on a variety of other projects. Your portable asphalt grinder may be perfect for surface milling for trench plate recessing. You can also use it for asphalt pulverization on a parking lot repair project.
In fact, the same asphalt grinder is also a powerful road reclaimer that can do full-depth reclamation on a wide variety of road patching projects, or even full road reconstructions. By purchasing machines with multiple uses, you can increase your service offerings. Instead of sitting on a lot, your equipment can be making money in numerous ways.
Summary
Smart budgeting turns utility trenching projects into profitable jobs. Estimate costs carefully, invest in the right asphalt grinding equipment, and train crews to work efficiently. Reuse asphalt millings, track expenses in real time, and maintain your machines to prevent costly downtime. With these best practices, you can keep projects on budget, improve productivity, and grow long-term profitability.
Google Takeaways
- Estimate Costs Early – Break down labor, materials, equipment, and overhead before starting. Small errors here cause major budget problems later.
- Use Asphalt Grinding Over Sawcutting – An asphalt grinder saves up to $10,000 per 100 feet of trench. It also eliminates hauling, disposal, and extra cutting costs.
- Invest in the Right Equipment – Portable asphalt grinding machines and milling machines reduce rental costs and speed up trench work. Faster production equals lower project costs.
- Maintain Equipment Regularly – Preventative maintenance on asphalt milling machines prevents breakdowns. Daily greasing, fluid checks, and bit replacement keep work on schedule.
- Control Material Costs – Buy pipe, gravel, and asphalt in bulk. Recycled asphalt millings from asphalt grinders can be used for trench backfill to reduce material and disposal costs.
- Train Crews for Efficiency – Training operators on asphalt grinding / milling attachments boosts precision and prevents mistakes.
- Track Expenses in Real Time – Monitor job costs daily and make quick adjustments to keep projects on budget.
- Diversify Service Offerings – Use asphalt grinders for more than trenching. Use them for road repair, parking lot milling, or full-depth reclamation to keep machines profitable year-round.