Many of the ("hey I just got done with a big job down the road, have some extra material, will give you a good deal if you want your 10'x 20' driveway done, for like $8000.00") paving contractors around here would have new equipment every season, but have to take it all to florida or south to work in the winter, or have to sell it off, or go bankrupt etc. Every spring you would see new trucks, trailers, paving machines, rollers, skidsteers or industrial tractors with box blades etc. etc.
Some of these outfits were so inept, they could not even set up an optical level to shoot grades, lack of education, experience, business sense and financial planning, is the root of failure in these business's.
I had one on a job we did, that somehow got awarded a contract on this state job, before we took it over, as a construction manager, and we could not get rid of them, due to the contract, they should have been prequalified based on other work, but were not, what a disaster, they did not know layout, even the owner could not set up an optical level/transit, could not follow pitch/slope established by new curbs, material arrived and the temperature of the material when it arrived almost violated the specifications, was not compacted properly, mix design did not have the correct aggregate, nor enough bituminous material in the mix, we had to reject a whole bunch of work, they violated a stop work order and continued paving, all that was rejected too. The lack of layout expertise and not being able to shoot grades, cause a poding area over a valve vault, was part of a very large and new piping system on this job, flooded that, had to grant an emergency change order to another contractor to fix it and back charge them. It cost them $80,000.00 in claims when said and done, and they were defaulted for failure to perform. You see a contractor with all new equipment, and he does not know what a transit is, get em off the job immediately !
Lots of site work contractors have gone that route, you really need to know what you are doing in that business if you are going to stay afloat.
It's one thing to finance a whole bunch of equipment, trucks etc. but if you don't have the jobs to support it, jobs that warrant new or late model equipment, that you can complete, get repeat business, have enough profit in them, and or knowing how to protect those profits while you are in the midst of performing the work, the bottom can fall out very easily.
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Today's Featured Article - A Cautionary Tale - by Ian Minshull. In the early 1950s my father bought an Allis Chalmers B and I used it for all the row crop work with the mangolds and potatoes, rolling and the haymaking on our farm. The farm and the Allis were sold and I have spent a lifetime working on farms throughout the country. I promised myself that one day I would own an Allis. That time event
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