Water, Gas, & Power: Essential Utility Hookups for Ground-Up Projects

Post by Longhorn Funding on April 15, 2025

For real estate investors, developers, and flippers, utility hookups can feel like a behind-the-scenes nuisance—until they delay your entire project. Whether you’re breaking ground on a new build or rehabbing a property with outdated infrastructure, navigating utility connections for water, sewer, electricity, and gas is critical to staying on schedule and within budget. Here’s how to get ahead of the game:

🕒 1. Start Early

📞 Call utility providers before closing. Utility installations often take 30–90 days and may require site plans, permits, and scheduling coordination. Early planning avoids costly downtime.

🧭 2. Know Your Jurisdiction

🏙️ Are you within city limits, a MUD (Municipal Utility District), or a rural co-op? Each has different rules, processes, and timelines. Call the planning office or look up GIS maps to verify.

💸 3. Budget for Fees

Fees vary wildly, but here’s what to expect:

💧 Water/Sewer Tap: $2,000–$10,000+

⚡ Electrical Service: $1,000–$5,000+

🔥 Gas Line Setup: ~$1,000+

Also factor in trenching, easement costs, or service line extensions. Always build a buffer into your rehab or development budget.

🛠️ 4. Coordinate with Your GC

👷 Your General Contractor should know the utility layout and schedule stub-outs early—especially before pouring foundation.

💡 Delays here often cause knock-on effects with inspections and progress milestones.

📄 5. Track the Permits

📝 Utility hookups often require separate permits, trench inspections, and 811 Call Before You Dig coordination. A missed permit or failed inspection can freeze your jobsite for weeks.

💼 Consider hiring a permit expediter if the municipality is slow or hard to navigate.

💡 Bottom Line:

Utility planning isn’t glamorous—but it can save you weeks of delay and thousands in carrying costs. If you’re a developer, flipper, or investor doing ground-up builds or heavy rehabs, include utility coordination in your due diligence checklist from day one. Check with your private money lender to see if they can offer any valuable insights for you!