ROI for Earthwork
Is investing in pricey earthwork projects worth it?
Those looking into earthwork services can come from a wide range of needs, wants, industries, roles, etc.. Many of our customers are those who need to contract an earthwork provider because what they are building requires a solid earthwork foundation to start with. On the other hand, some of our customers don’t necessarily “need” earthwork services, but would like to perhaps better their property by either adding a new earthwork structure or improving an existing one. This article is mostly tailored to the latter – those who are considering whether an optional earthwork project would be worth it for them – but could contain information helpful to anyone considering earthwork construction.
Let’s begin by being honest – even a small earthwork project may cost tens of thousands of dollars, in some cases. So, what is the return on investment for a buyer? Why should you sink money into a project that would be nice to have, but maybe isn’t absolutely necessary? We’re glad you asked! There are many benefits to investing in earthwork construction on your property. In a nutshell, such benefits include increasing the value, usability, and/or appearance of your property, to name a few. But, let’s dive in further…
The exact ROI for earthwork is, of course, dependent on each project and the customer’s goals for that project. But, let’s go over a few examples that may resonate with you:
Example 1: A landowner is interested in adding a caliche road to the house and barn on their ranch. There is an existing dirt road that works fine most of the time, but, if you use it following a rain, the road often becomes sloppy and rutted and requires significant maintenance – not to mention there is also the possibility of a vehicle getting stuck. The road is 2 miles from the gate to the buildings and the landowner wants to make the existing road into an all-weather caliche road. If the landowner chooses to proceed, they will benefit from the following:
- Improved access to the buildings on their land – regardless of weather – that was previously more limited.
- Reduced road maintenance costs, as a caliche all-weather road is built to last and should not erode easily like the dirt road.
- Added value to the property, if the landowner chooses to sell one day.
Example 2: A business owner with a retail store is thinking about expanding their gravel parking lot. The current one is small and they have some extra room on one side of their store in which they could expand. In addition to the expansion, the business owner also wants to touch up the existing parking lot, which has some potholes. If the business owner contracts for the work to be done, they would likely see the following positive results:
- They would be able to accommodate many more customer vehicles as well as larger vehicles, including semi-trucks that would have room to park and turn around – providing convenience to their customers and attracting customers that previously may have shopped somewhere else due to poor/unavailable parking.
- An improved parking lot would improve the appearance and therefore reputation of their business.
- Added value to the retail property, if they ever wish to sell it in the future.
Example 3: A homeowner with several acres is considering adding a pond to their property. There are currently no water structures on the property. If they choose to get the pond built, the following advantages would likely result:
- The eye appeal and value of their property would instantly increase.
- They would be able to use the pond for enjoyment with family and friends (fishing, kayaking, etc.).
- The new pond would provide them with the option to keep livestock on their property (which has tax benefits) without needing to build additional infrastructure (such as water troughs) that does not provide all of the benefits that the new pond would.
These were just a couple examples of how investing in earthwork offers multiple, varied benefits. Adding new or improving existing earthwork on your property ALWAYS adds value to that property – financial value, and, oftentimes, peace of mind and/or the value of being able to enjoy your property more!