Ten Jobs Used Those Forms, One Job Paid for Them
Your yard is full of panels and shoring, every job report says you made money, and the bank account disagrees. The form buy hit job one and jobs two through ten absorbed none of it.
Rental accrues on calendar days while forms only earn on pour cycles, so the two clocks run at different speeds and only one of them is under your control. A trade that buys tools and consumables can spread cost by the hour or the piece. You're spreading a large capital item across pour cycles that a lab technician releases, which is why the same panel set can be cheap on one job and expensive on the next with nothing about the panels having changed.
The size of it
Job margins come out wrong in both directions, so you can't tell a good job from a bad one when you go to bid the next one. Every day the forms stay past stripping strength is a full day of crew, crane, rental, and field overhead against zero placed yards, and a weather or GC delay burns the shoring rental clock with no change order behind it.
Formwork is the equipment that makes the product, but most concrete contractors expense the whole buy to whichever job placed the order. That craters job one and makes every later job read as profitable, because those jobs absorb no form cost at all. The recovery rate isn't yours to set either: ACI 347 gates stripping on in-place strength, so the turn on your own equipment waits on a testing lab. Studies of formwork economics put labor and crane at roughly 73 percent of formwork cost and rental at only about 17 percent, and show that taking a panel set from 4 pours to 40 pours cuts cost per square foot by roughly 40 to 44 percent.
Three moves, in order
Step 02: Equipment cost basis
A correct internal rate per machine covering ownership, maintenance, fuel, and transport, charged to the projects that used it.
What else costs concrete contractors money
The same mechanism in other trades
What concrete owners ask
How to allocate formwork cost across multiple jobs?
Your yard is full of panels and shoring, every job report says you made money, and the bank account disagrees. The form buy hit job one and jobs two through ten absorbed none of it.
What does it cost?
Job margins come out wrong in both directions, so you can't tell a good job from a bad one when you go to bid the next one. Every day the forms stay past stripping strength is a full day of crew, crane, rental, and field overhead against zero placed yards, and a weather or GC delay burns the shoring rental clock with no change order behind it.
What do I do first?
Move panels, shoring, and hardware onto an equipment schedule with a per-use or per-square-foot rate, then charge that rate to jobs the way you charge a pump.
What are concrete contractors supposed to be making?
Concrete runs 21% gross margin, 14% 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 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.
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 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.