The paper presents analysis of laboratory experiments on soils that are usually classified as coarse grained soils and are often use as backfill for trenches from pipes and conduits. The reason for selecting coarse grained soil is a generally accepted fact that fine soils suffer with soil structure collapse when the matrix suction is cancelled while for coarser soils such as sands or gravel this problem is frequently neglected. The main aim is to show the effect of rising and varying groundwater to the settlement of the foundation structure. Experiments are carried out on large soil specimens created in the laboratory using compactors. The effect of compaction and moisture inside the specimen to the settlement is taken into account.