Six Hours of Pumping, Eighteen Months of Retainage
You were on that job for six hours in March. Someone is still holding retainage on it two years later.
Retention exists to hold a sub who lives on the job for months and can be dragged back to finish. You leave before lunch, you've nothing to correct, and the hold still applies because your ticket rides inside somebody else's pay application. No one at the GC knows who your company is, and your release depends entirely on a closeout between two other parties.
The size of it
Money earned in month three gets paid in month twenty-one on a half day of work. A one-day ticket never gets a WIP schedule, so most pumpers can't say what their total outstanding retention is.
You're usually billing the concrete sub and not the GC, so a $2,800 pour ticket folds into that sub's monthly requisition and inherits the GC's 5 to 10 percent retainage plus the pay-when-paid clock. Your entire scope was one morning in month three of an eighteen month build, and your money now releases at a closeout you'll never attend. Preliminary notice makes it sharper, because the deadline runs from the first date of furnishing, and for you furnishing is a discrete pour date rather than a continuous presence on site. Two pours four months apart on the same job means the first ticket's notice window closed while you were waiting to get called back.
Three moves, in order
Step 05: Software and bookkeeping alignment
Live job costs inside thirty seconds, with the bookkeeping cadence that keeps them current.
What else costs concrete pumping contractors money
The same mechanism in other trades
What concrete pumping owners ask
Concrete sub is holding retainage on my pump invoice?
You were on that job for six hours in March. Someone is still holding retainage on it two years later.
What does it cost?
Money earned in month three gets paid in month twenty-one on a half day of work. A one-day ticket never gets a WIP schedule, so most pumpers can't say what their total outstanding retention is.
What do I do first?
Pull every open pour ticket and mark the withheld amount, then total it by concrete sub, so you've one retainage number per customer.
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 is right on it. The CFOS target is 10.5%.
Which part of the system fixes it?
The step is number 05, software and bookkeeping alignment. Live job costs inside thirty seconds, with the bookkeeping cadence that keeps them current. It comes from chapter 5 of CONTROL: The Construction Financial Operating System.
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 pumping contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.
Wrote CONTROL, the 8 step system behind these figures. More about the author.