Grout, Diesel, and Payroll Go Out Before the Invoice
You mix grout and throw it away before you pump one yard you can bill for, and the busiest month is the thinnest month in the bank.
A trade that installs material bills the material it bought. You buy grout to throw it on the ground. Diesel goes in the tank to reach four addresses, and a bag of washout leaves someone else's site clean, but none of that carries a billable line big enough to cover it. The more pours you book, the more of it you fund, so a strong month pulls cash out before the first check on those pours comes in.
The size of it
Peak season becomes the cash-poorest season, because every added pour funds its own prime, fuel, and payroll weeks before the check on it clears.
Every pour gets bought before it can be invoiced. Priming slurry is mixed and discarded at the start of every job against a primer line of $25 to $75, washout consumables run about $195 a bag, and when the site has no washout area you either eat the disposal or fight the customer for the $250 to $350 penalty. Add a full tank of diesel per truck-day, the hose and pipeline inventory riding on the truck, and weekly wages against a fully worked operator cost near $83K a year, and you fund all of it 45 to 75 days ahead of collection. The fuel surcharge of 7 to 12 percent gets applied to invoice value and not to the diesel you burned, so a standby-heavy day recovers almost none of it.
Three moves, in order
Step 01: Job cost structure
Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words.
What else costs concrete pumping contractors money
The same mechanism in other trades
What concrete pumping owners ask
Concrete pumping cash flow tight in busy season?
You mix grout and throw it away before you pump one yard you can bill for, and the busiest month is the thinnest month in the bank.
What does it cost?
Peak season becomes the cash-poorest season, because every added pour funds its own prime, fuel, and payroll weeks before the check on it clears.
What do I do first?
Put prime, washout, fuel, and operator hours on the job cost record for every pour, so a pour with almost no billable yardage still carries what it consumed.
What are concrete pumping contractors supposed to be making?
Concrete pumping runs 23% gross margin, 16% overhead and 7% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade sits right on it. The CFOS target is 10%.
Which part of the system fixes it?
The step is number 01, job cost structure. Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words. It comes from chapter 1 of CONTROL: The Construction Financial Operating System.
