CONCRETE FLATWORK · CONCRETE AND MASONRY · FIXED BY STEP 02

You bid one mobilization and drove out five times

The building slab made money and the sidewalks, ramps, and dumpster pad at the end took it back, eighteen months after you priced them.

WHY IT'S A CONCRETE FLATWORK PROBLEM

The estimate gets built on total square feet, and total square feet assumes one setup without ever saying so. The closeout pours have the worst yardage to labor ratio in the trade, with short load fees applying under about 4 yards and demurrage exposure when a truck waits past the allowed unload time, so the smallest scope has the highest unit cost and the most equipment per yard placed. Nothing in the bid separates the last trip from the first, so the loss on it stays invisible until the job closes.

WHAT IT COSTS

The size of it

Four unbudgeted equipment moves at $1,200 to $2,500 each plus setup labor is $8,000 to $15,000 that was never in the number. The closeout trip is also where retention gets decided, so the least profitable mobilization controls whether the profitable one ever pays out.

OVERHEAD AT $1M–$5M

14%

CFOS target 13% for concrete flatwork.

GROSS MARGIN AT $1M–$5M

22%

CFOS target 24.5% for concrete flatwork.

NET PROFIT AT $1M–$5M

CFOS target 11.5% for concrete flatwork.

Flatwork hits a job in three separate sequence positions, and the bid usually prices one. The building slab on grade goes early, right after foundations. Interior infill, housekeeping pads, and equipment pads come mid-build after MEP rough. Exterior flatwork, meaning the sidewalks, aprons, ADA ramps, curb, and dumpster pads, waits on underground utilities and paving and gets built at closeout, sometimes 12 to 20 months after the first trip. Every return moves the same iron: laser screed, ride-on trowels, saws, skid steer, forms, and a lowboy.

WHAT TO DO

Three moves, in order

STEP 01

Count the mobilizations off the drawings before you price anything, and price the move, the setup labor, and the short-load exposure as their own line for each trip.

STEP 02

Cost each mobilization separately in the job cost, so you can see which trip made money and which one gave it back on the same job number.

STEP 03

At the start of the closeout mobilization, get the exterior flatwork dates confirmed on the GC's schedule in writing and tie your retention release request to that scope being released to you on time.

THE FIX

Step 02: Equipment cost basis

A correct internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it.

CFOS-02 · CHAPTER 2

What your equipment really costs per hour

What this step changes, what it depends on, and how to tell it's installed.

BENCHMARKS

Concrete flatwork by revenue band

All 7 bands are published. The CFOS target is beside the figure up to $10M to $25M, and the 4 bands above that are labelled modeled.

ACROSS EVERY TRADE

Your equipment is eating the margin

The machine is paid for, so the jobs use it at no charge. Then the transmission goes and the year is gone.

SAME TRADE

What else costs concrete flatwork contractors money

CONCRETE FLATWORK · CFOS-04

Your ready-mix quote expires. Your subcontract doesn't.

You priced the yard in March off a quote sheet and bought it in November off a new one, and the number you signed with the GC never moved an inch.

CONCRETE FLATWORK · CFOS-01

The 63 yards disappear between square feet and cubic yards

The slab came out at the thickness the drawings called for, you never got a change order, and you still bought and placed yards that weren't in the bid.

CONCRETE FLATWORK · CFOS-06

The long lead item in flatwork is a truck slot

You can't buy concrete ahead of the job or ahead of a price increase. You buy a place in the plant's Tuesday morning schedule, and the plant decides whether you keep it.

CONCRETE FLATWORK · CFOS-07

One pour day outspends a month of payroll

Tuesday morning you spend sixty grand before lunch, you bill it on the 25th, and the money reaches your account sometime in October if the GC gets paid.

CONCRETE FLATWORK · CFOS-08

Fifteen trades wreck the floor and one sub pays for it

Every contractor on the job used your finished slab as a work platform and a staging yard for a year and a half, and the closeout punch list comes to you.

SAME MECHANISM, OTHER TRADES

The same mechanism in other trades

CIVIL

Four mobilizations, one mob line item

You clear and grub in month one, come back for wet utilities, come back again for paving subgrade at closeout, and the contract still has one mobilization line.

CONCRETE

Six Trips Back for Pads and Sidewalks, One Unit Price

You were first on the site and you're still coming back for stairs, pads, curbs, and exterior flatwork, all priced inside a per-yard number that assumed you never left.

DRYWALL

You Go Back Six Times And No Ticket Gets Signed

You hung the corridor in March and you're still sending a guy back in June, one hole at a time, on somebody else's dime.

QUESTIONS

What concrete flatwork owners ask

How many mobilizations should I price on a flatwork bid?

The building slab made money and the sidewalks, ramps, and dumpster pad at the end took it back, eighteen months after you priced them.

What does it cost?

What do I do first?

Count the mobilizations off the drawings before you price anything, and price the move, the setup labor, and the short-load exposure as their own line for each trip.

What are concrete flatwork contractors supposed to be making?

Concrete flatwork runs 22% gross margin, 14% overhead and 8% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is 1 point above it. The CFOS target is 11.5%.

Which part of the system fixes it?

The step is number 02, equipment cost basis. A correct internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it. It comes from chapter 2 of CONTROL: The Construction Financial Operating System.

OR HAVE IT HANDLED

Everything on this page is something you can install yourself, andCONTROL is the order to do it in. If you would rather buy the finished result, SPM The Construction CFO does this work for concrete flatwork contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.

What a fractional CFO does for concrete flatwork contractors

AUTHOR

JOSH LUEBKER

MASTER ELECTRICIAN · 150+ PROJECTS · $2.1B+ MANAGED

Wrote CONTROL, the 8 step system behind these figures. More about the author.