A first job before the business had equipment
Scott recounts accepting an early clearing job before he owned the machinery to perform it. The story frames how he pieced together capacity while building a company in Georgia.
Price compliance and profit into site work
He says grading bids need to account for erosion-control and permitting requirements where applicable, not just equipment and labor. He also pushes back on bidding merely to break even in a price-sensitive market.
Play episode 11.
Paving changed the company's trajectory
After an early cash crunch, Scott turned to asphalt work he already knew and promoted it through Google ads. He contrasts paving and sealcoating with grading projects exposed to weather delays and discusses a longer-term shift toward asphalt and concrete.
Avoid financing traps and separate the money
Scott warns new owners about merchant cash advances and emphasizes building credit before large equipment purchases. He also urges separating personal and business finances and handling customer deposits carefully.
Teach the ground work before handing over the controls
Scott describes a hiring problem that cannot be solved simply by finding someone who has driven a skid steer. In his view, operating safely and accurately also requires understanding grade stakes, cross slope, paving equipment and the sequence of work around the machine. He says an applicant who cannot demonstrate those skills may start with a shovel alongside an experienced worker rather than immediately receive machine responsibility. He also speaks warmly about young employees he trained, including a roller operator who initially lacked confidence. The episode presents hands-on mentoring as a way to build capability and loyalty, while recognizing that an apprentice may eventually choose a different career or start a business of their own.
See the full conversation.
Include transportation and service vehicles in the bid
An estimate for grading or clearing has costs before the first bucket moves. Scott points to the expense of transporting multiple machines to a site when the contractor does not own the hauling equipment. He also describes heavy mileage and unexpected repairs on trucks that support the crews, including the disruption when a service vehicle is unavailable. These are different from the obvious fuel and operator hours a new owner might calculate. The practical question is whether a bid can pay for getting equipment there, keeping field support on the road and recovering from failures, as well as the visible production work. Contract value alone says little about that margin.
Supplier terms can change the economics of material jobs
Scott argues that contractors buying stone for driveways and parking pads should learn how their quarry and supply relationships work rather than assuming a delivered third-party price is the only option. He discusses applying for net-term accounts with quarries and other suppliers and comparing the material price, trucking charge and payment timing before bidding. He presents these accounts as useful for cash flow and potentially for lowering material costs, while acknowledging that a new business may have difficulty securing credit. The lesson is not to borrow indiscriminately: know the terms, know when payment comes due and price the material and haul separately enough to see where the money goes.
Ideas to take back to the work
- Scope the regulatory and erosion-control obligations before committing to a grading price.
- Compare services by time, weather exposure and cash flow rather than contract value alone.
- Treat short-term financing and customer deposits as financial risks requiring careful review.
Questions from this conversation
Why does Scott say a low clearing bid can be misleading?
A low bid may overlook site-specific erosion-control or permitting work, equipment costs and the profit needed to keep the business operating.
What helped Clear Grade through its early cash crunch?
Scott says he used his existing asphalt skills and began advertising paving, which brought in work after an especially difficult start.
What financing does Scott caution new contractors against?
He strongly warns against merchant cash advances, describing their repayment terms as especially difficult for a young business.
Why might a new operator at Clear Grade start on the ground?
Scott distinguishes having spent time in a machine from knowing how to read stakes, establish grades or run paving equipment for a specific task. He says some applicants should work beside experienced crew members with a shovel first. His account of coaching a hesitant roller operator shows that this is intended as training, not a permanent ban from equipment.
What does Scott suggest checking before buying aggregate for a driveway job?
He recommends comparing quarry or supplier account terms with the price quoted by a party delivering the stone, while also accounting for trucking. In his experience, net-term supply accounts can help cash flow and material pricing, though approval is not automatic. Contractors still need to understand their own payment obligations and quote the entire delivered scope.