There is no provincial contractor licence for excavation as such, but one rule is absolute and applies in every province: you must request a utility locate before you break ground. In Ontario that duty is set by the Ontario Underground Infrastructure Notification System Act, 2012, and you contact Ontario One Call before any digging. Every other province has its own one-call service, and the rule has no exemption for the size of the job: it applies to a homeowner putting in a fence and to an excavation company alike. The locate is free. Beyond that, excavation needs a commercial-vehicle licence to move trucks and equipment, and it is the most capital-intensive trade to enter. Plan your locates, plan your capital, and the rest follows.
Licensing: no licence to dig, but the locate is the law
There is no specific provincial contractor licence to operate as an excavator. What is regulated is:
- The locate before digging. Anyone who digs must contact the provincial one-call service before breaking ground. In Ontario this is Ontario One Call under the Ontario Underground Infrastructure Notification System Act, 2012, and there are no exemptions for scope of work. Other provinces run their own services (for example BC One Call, Utility Safety Partners in Alberta, Info-Excavation in Quebec and the Atlantic provinces), and most can be reached through ClickBeforeYouDig.com. The standard minimum advance notice is about three full working days. The service is free and operates around the clock.
- Private buried lines are NOT covered. A one-call locate marks the public utilities. The line between a house and a garage, or any other privately owned buried service, is not covered, so you must arrange those separately with the owner.
- Commercial vehicle licensing. Moving trucks and equipment needs the appropriate commercial driver's licence (for example a DZ or AZ class in Ontario).
- Operator credential. The Red Seal Heavy Equipment Operator designation is available and is one of Canada's 54 designated trades, but it is voluntary, not compulsory.
If you dig without locates and strike a gas or electrical line, you face civil and potentially criminal exposure, insurance claims can be denied, and for a contractor it is a workers' compensation incident trigger. The locate is the cheapest insurance in the trade.
Kit and start-up costs (estimates, CAD)
Excavation is capital-intensive, which is the main barrier to entry. Indicative ranges, so confirm current prices:
- A mini excavator (buy or lease): roughly $40,000 to $120,000.
- A dump truck: roughly $40,000 to $100,000 used.
- Ground protection mats: roughly $2,000 to $8,000.
- CGL insurance plus an equipment floater: roughly $5,000 to $15,000 per year.
- A DZ or AZ licence course and test, if you do not already hold one: roughly $2,000 to $5,000.
A realistic first-year estimate lands around $80,000 to $200,000 or more, depending on whether you buy or lease the machines. Many operators rent or lease in year one to keep the capital down.
What you can charge (estimates, not fixed rates)
There is no single published national rate table, so treat these as indicative ranges that vary by region, soil and access. A mini excavator with operator runs roughly $150 to $300 per hour across the country, higher in the premium GTA and Vancouver markets and lower in the Prairies and Atlantic Canada.
- Mini excavator (machine and operator): roughly $150 to $300 per hour.
- A typical residential basement excavation: roughly $8,000 to $20,000 depending on soil.
- Topsoil or gravel hauling: roughly $200 to $500 per truckload delivered.
- Trenching: roughly $30 to $100 per linear foot depending on depth and access.
Confirm your numbers against local quotes, because soil and site access move these figures a lot.
Common mistakes
- Digging without a locate. This is the cardinal error. It is illegal, it can be deadly, and it voids your insurance.
- Assuming the one-call locate covers everything. It marks public utilities only; private buried lines are your responsibility to find.
- Under-insuring an expensive fleet. An equipment floater on top of CGL is not optional when you have six figures of machines.
- Forgetting GST/HST. Once taxable revenue passes $30,000 over four consecutive quarters (or in a single quarter), you must register within 29 days of the effective date.
Know someone who needs this?
Keep reading
Was this guide useful?
Didn't find what you were looking for?
Spotted something wrong or out of date? Email us at hello@kilnguides.co.uk.
In crisis? 988 Suicide Crisis Helpline (call or text 988) ·