Your Ready-Mix Quote Expired Eleven Months Before the Pour
Concrete has about a 90-minute working life from batch to placement, so your supply market is a haul radius with two or three plants. They quoted a market that's gone.
A contractor buying wire, pipe, or lumber can lock a price, take delivery early, and sit on the material in a warehouse. You can't warehouse concrete for even two hours, so every yard is bought at whatever the price is the morning it pours, from a supplier with no real competition inside the haul radius. That makes escalation a structural exposure on your largest material line, not a bad-luck event.
The size of it
On a package where ready-mix runs 30 to 45 percent of cost, a $15 to $20 per yard move across the pour schedule can take the whole profit on the job. It stays invisible because the estimate is carried at bid pricing and the variance only appears truck by truck on batch tickets nobody reconciles back to the bid.
A ready-mix quote is good for 30 to 90 days. The job runs 12 to 24 months, and escalation language is routinely struck out of hard-bid subcontracts before you sign. National average ready-mix moved from roughly $113 per yard in 2018 to about $180 per yard in 2024 and 2025, and the plants inside your radius know they're the only ones who can physically serve the site. You can't hedge it either, because there's no way to buy forward and store the product.
Three moves, in order
Step 04: Estimating system
The estimate maps one to one onto the job cost codes, so variance means something the day it appears.
What else costs concrete contractors money
The same mechanism in other trades
What concrete owners ask
Ready mix price went up after I bid the job?
Concrete has about a 90-minute working life from batch to placement, so your supply market is a haul radius with two or three plants. They quoted a market that's gone.
What does it cost?
On a package where ready-mix runs 30 to 45 percent of cost, a $15 to $20 per yard move across the pour schedule can take the whole profit on the job. It stays invisible because the estimate is carried at bid pricing and the variance only appears truck by truck on batch tickets nobody reconciles back to the bid.
What do I do first?
Reconcile batch tickets to the estimate weekly in yards and dollars per yard, by placement, not once at job close.
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 sits right on it. The CFOS target is 10%.
Which part of the system fixes it?
The step is number 04, estimating system. The estimate maps one to one onto the job cost codes, so variance means something the day it appears. It comes from chapter 4 of CONTROL: The Construction Financial Operating System.
