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Who should purchase concrete?

Recently, builders have begun to purchase concrete for the foundation contractor. But, is this a good idea? While some benefits exist for the builder purchasing the concrete, the eventual outcome may be negative to quality and quantity control, as well as possibly add to the overall cost.

This scenario began when some builders cited a lack of consistency in mix design used by various contractors. Builders also then began to fear that if the contractor is not keeping up with his/her accounts payable, liens could be filed against the builder's properties. More builders want to join the trend and grab the perceived "buying power" of consolidated purchasing. After all, they are already buying lumber packages, windows, plumbing fixtures and appliances, so why shouldn't they purchase the concrete also.

Several reasons exist why it might be better for the foundation contractor to purchase the concrete including:

• The foundation contractor has spent years developing a relationship with the ready-mix supplier. The supplier knows what the contractor needs, how fast he needs it and how well he pays his bills. The contractor's crews and the ready-mix drivers know each other and know what is expected of each other.
• The contractor has also spent years becoming educated on which of the hundreds of possible mix designs to use for today's application and weather. Decisions on which mix to use are based on what gets the biggest "bang for the buck" rather than the lowest bid. Quite often we use two or more mix designs in the same pour. A mix that is too slow to set (often the case with the low bidder's material) can cost the flatwork finishers valuable time and can be dangerous in wall applications.
• No other material in home construction is as time-sensitive as concrete. Delivery times are critical, as are the amount of time between loads. The low bidder may be many miles away from a particular plant than a slightly more expensive competitor, which can be a huge problem in the heat of the summer or the cold of winter. Since it is the foundation contractor and the quality of his product that suffer from time delays, he needs the clout that comes from paying the bills.
• The contractor has often spent years building his business and buying power. Part of the contractor's overall cost structure depends on buying concrete at good prices on all jobs. Losing that buying power will lead to increased costs for the business and all of its customers.

Although the answer is not completely black and white, there are definite advantages to having the foundation contractor purchase the concrete. Be prepared to show the builder your expertise in this arena and the benefit it can bring to the project. — Jim Baty, Concrete Foundations Association