Why Concrete Contractors Lose Money by the Yard
Concrete contractors lose money by the yard when labor cost per yard never gets measured, weeks of formwork and rebar go unbilled before the first pour, and ready-mix bills come due faster than pay applications pay. One $4.9M concrete contractor grew net profit from $161K to $1.1M in a year on the same revenue with CONTROL.
The specific ways concrete contractors lose cash, pulled straight from what makes this trade different.
Labor Cost Per Yard
Labor is the number that decides whether a pour made money, and most contractors never see it per yard. Tracking burdened labor against yards placed turns every pour into a scoreboard.
Pre-Pour and Post-Pour Billing
Formwork, rebar, and embeds consume weeks of labor before any concrete shows on a pay application. Your schedule of values has to bill that work as it happens.
SOV Front-Loading
Front-loading a schedule of values means weighting early line items so early pay applications fund the work. Done right, it is standard practice that keeps you off the line of credit.
Ready-Mix Procurement
Ready-mix suppliers run short terms and will cut you off fast. Their invoice timing has to live inside your cash forecast, not surprise it.
The CONTROL chapters that solve this for concrete contractors specifically.
Why do concrete contractors lose money on pours?
How should a concrete contractor structure a schedule of values?
What profit margin should a concrete contractor target?
