How to Start a Utility Line Locating Business
- Nate Jones
- Oct 2
- 2 min read
Utility line locating is a critical service in construction, excavation, and infrastructure development. It ensures underground utilities—such as gas, water, electric, and telecom lines—are accurately identified before digging begins. With increasing demand driven by infrastructure expansion and safety regulations, starting a utility line locating business can be a profitable venture.
Here’s a step-by-step guide to help you launch your business successfully.
Step 1: Understand the Industry
Utility locators use specialized equipment to detect and mark underground utilities. Services are often required by:
Construction companies
Municipalities
Engineering firms
Utility providers
The work involves electromagnetic locators, ground-penetrating radar (GPR), and GPS mapping tools to ensure accurate detection and documentation.
Step 2: Get Proper Training and Certification
Training is essential for accuracy and safety. Recommended programs include:
NULCA Certification (National Utility Locating Contractors Association)
PHMSA-compliant training (Pipeline and Hazardous Materials Safety Administration)
Hands-on courses from providers like Center Line Resource and Locating Dynamics
Training typically covers:
Electromagnetic locating techniques
Utility mapping
Safety protocols
Equipment handling
Step 3: Acquire Equipment
Essential tools include:
Electromagnetic utility locators
Ground-penetrating radar (GPR)
GPS receivers and mapping software
Marking tools and flags
Startup costs vary but expect to invest $10,000–$50,000 depending on the quality and range of equipment.
Step 4: Register Your Business and Get Licensed
You’ll need to:
Choose a business structure (LLC, Corporation, etc.)
Register with your state and obtain a business license
Get an EIN from the IRS
File for a DBA if using a trade name
Some states may require additional permits, especially if you plan to subcontract for government projects.
Step 5: Get Business Insurance
Utility locating involves liability risks, especially when working near gas or electric lines. Protect your business with:
Excavating Insurance Partners specializes in insurance for hydro excavation and utility locating contractors. We offer tailored coverage to protect your team, tools, and operations. Learn more at Excavating Insurance Partners.
Step 6: Build Your Client Base
Start by networking with:
Local engineering firms
Construction companies
Municipal agencies
Offer competitive rates and highlight your certifications and safety record. A professional website optimized for SEO can help attract clients searching for:
“Private utility locators”
“Underground utility detection services”
“Utility line locating contractors near me”
Final Thoughts
Starting a utility line locating business requires technical expertise, proper equipment, and strong insurance coverage. With infrastructure projects booming across the U.S., now is a great time to enter this essential industry. Contact Excavating Insurance today!