Applying of demolished concrete lumps (DCLs) in the pier foundation is an effective way to improve the efficiency of construction waste resource utilization. Fifty-two cylindrical specimens with the size of ∅ 250 mm × 500 mm were fabricated by mixing of DCLs with the fresh concrete (FC) and used to investigate the influence of two key factors, the gradation of the DCLs and the height setting of layered “steel mesh,” on the uniaxial compression and flexural strength properties of the compound concrete specimens. Results indicate that the layered “steel mesh” in the specimens can restrain the settlement and segregation of the DCLs and improve the compressive and flexural strength of the specimens significantly. Normally, there are two types of failure damage mode of the test pieces, the failure of the interface between DCLs and the FC and the fracture failure of the DCLs. When the stress level is below 0.5, the test piece is in the elastic stage. Crack development occurs when stress level further increase to 0.7–0.9. The pieces with the layered pouring height of H2 and the DCLs of R3 present the optimum compressive strength and flexural strength and also best construction effect.