Offering $25.00 plus gas will make a mean neighbor that sends you hate mail real often.
The cheapest I can rent a small utility compact w/ loader/ fwa/backhoe is $50.00 on the hr by the hr meter. Then I addd my wages on top of that. The machine has 100 hrs on it.
Some older units can be almost out done with a good shovel if pump is weak. bushings worn etc.
I know we all have friends and neighbors that we think owe us a discount for some reason or another. I have no idea what you do for a living, how much you have helped the neighbor (before this project), or most details. That being said if you expect him to work for half price, perhaps your next day at work you should work for half price because you and the boss are kinda friends also.
I do construction work, and get numerous invitation to a stress free weekend shingling, instaling windows, dirt work etc. All the fun of a burger / chips dinner on my day off. It resembles the offer to do all the charity work for churches, schools, fire dept, also sports projects for the kids. Gets old fast I must say, however big projects the contracts often go out of town.
I will again take my meds, and a rest.
I personaly refuse to take a discount from my friends, that is how they make their living. Don't get me wrong I do more free work than 99% of the contractors in my town. BUT ONLY when I'm hired as if to get full pay...then after the project is over I give it to them free. If they insist on a discount, I give them my competitions phone numbers.
Just make sure he is qualified to do the project, insurance, etc. Most shade tree operators make for a very expensive project even if it is a free project. This probably would not include digging out stumps, fence rows etc. However tile lines, water lines, escavation requires a expert operator regardless of the cost.
In your case you could ask him to do a small project and see how it goes, before droping big dollars.
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