How do you go about pricing your services for profit?

How I Bid Linear Sewer Work with Confidence and Consistency

 

In construction, efficiency is everything. Whether you’re estimating a small run or an entire subdivision, the most important factor is how quickly and accurately you can translate scope into a reliable number. I approach all my bidding with a structured formula that turns project dimensions into predictable costs—and it’s worked for me time and again.

 

When I bid sewer work, I do it by the linear foot. That ensures I’m consistent across projects and simplifies budgeting both for me and the client. Here’s an example using 8” SDR 35 sewer pipe with pea gravel bedding, based on a 100-foot section. I bid based on what my crew can actually install per hour, and I build in material, labor, equipment, and markup for true margin.

 

MATERIALS – PIPE

• 100 ft @ 20-ft sticks = 5 sticks total

• Raw Cost: 5 sticks × $300 = $1,500

• Markup (30%): $450

• Total Pipe Material: $1,950

 

 

EQUIPMENT & LABOR (Per Hour to Install 100 ft)

 

Description Rate

Excavator $325/hr

Pipe Layer $70/hr

Labor Hand $50/hr

Loader $260/hr

Trench Box Rental $100/day = $10/hr → +30% = $13/hr

Total Labor/Equip: $718/hour

 

This assumes one hour to install 100 feet, which is achievable with an experienced crew.

 

BEDDING MATERIAL – PEA GRAVEL

• Volume Needed: 100 ft x 1 ft wide x 0.5 ft deep = 50 cu ft = 1.85 cu yd

• Cost/yd (Local): $50

• Total Gravel Cost: 1.85 × $50 = $92.59

 

COMBINED TOTAL BEFORE FINAL MARKUP

• Pipe (with markup): $1,950

• Labor & Equipment: $718

• Pea Gravel: $92.59

• Subtotal: $2,760.59

 

FINAL MARKUP – 10% ACROSS THE BOARD

• $2,760.59 × 1.10 = $3,036.65

 

FINAL COST PER LINEAR FOOT

• $3,036.65 ÷ 100 ft = $30.37 per foot

 

WHY THIS WORKS

 

This method gives me full control of my bidding process and keeps everything transparent. It accounts for:

• Equipment time

• Labor by the hour

• Exact material needs

• Overhead and markup, built in

 

By marking up each item 30%, I account for material reliability, risk, and the value of my sourcing and supply. Then I apply a 10% global markup to protect my margins and overhead. That structure gets me into the 25–45% margin zone, depending on the project.

 

If you’re a smaller outfit handling both the management and the work, you should be shooting for 55%+ to stay sustainable. Anything less, and you’re paying for your own jobs out of pocket.

 

Some clients may not understand why their quote is higher than the guy who scribbles numbers on a napkin. But when you break it down this way—clearly, with purpose—it gives them peace of mind that their job is planned, professional, and worth the investment.

 

Closing Thought:

One model doesn’t fit every job, but every estimator should have a model. This is mine. Once it’s built, I don’t have to guess, tweak, or second-guess. I plug in the job length, soil conditions, and material specs—and the numbers speak for themselves.