Price of a Steel Structure

3 February 2022

What Affects the Price of a Steel Structure?


IN BRIEF


  • Factors that drive building costs up include adding insulation, roller shutters, custom components, special property requirements, larger clear spans, complex engineering for gantry cranes, irregularly shaped buildings or a steep roof pitch.

  • Factors that drive costs down include securing a property with fewer overlay or covenant requirements, smaller clear spans, web truss rafters, standard gable roofs, opting for a ZINCALUME® roof instead of COLORBOND®, choosing standard galvanized roller shutters and using cheaper alternative insulations.

  • The cost difference between design and construct companies is due to the level of service provided, the raw materials used, their engineering standards, and whether the company is focused on volume or quality.

  • If you’re looking for a budget or entry-level structure we probably won’t be a good fit, as we aren’t the cheapest in the market. However – if you’re looking for a personalised, consultative approach and a high-quality custom design that will suit your needs for decades to come, we’d be happy to help.

An Unbiased Look at Commercial Building Costs

When you’re planning to invest in a commercial building project, it’s likely that you’ll receive a series of proposals that vary wildly in price. Why does the cost vary so much?


At the outset, they might look very similar: they’re the same size and made from the same basic materials. Under the surface however are dozens of factors that alter your quote, ranging from the shape of the roof to the amount of help and support your building designer is willing to provide.


Let’s take a deep dive into what drives commercial building costs up and down, and how you can make sure you end up with a steel building that fully meets your needs.

Which Factors Affect the Steel Structure Prices?

There’s a good reason that some steel structures come with a higher price tag – but that doesn’t mean you have to pay through the nose for your project.

You’re in control and you know what your budget is, so there’s nothing wrong with prioritising certain features over others or cutting out particular details to save money.

The key however is to work out which features are ‘nice to have’, and which factors are an absolute must. Everyone has different priorities and needs, so this is a very personal decision.

To help you compare steel structure prices with a critical eye, we’ve listed all the different things that can make an impact on the cost of your project.

What Drives The Cost Up?

  • Adding extras to the building, for example, insulation, roller shutters, windows, special facades, awnings and custom components.
  • Special ‘deemed to satisfy’ property requirements. This is somewhat out of your control as it is dictated by your Council. Things such as bushfire overlay requirements, landscaping overlay requirements and covenant requirements mean a more complex build that will have a higher price tag.
  • Larger clear spans (over 36m) may require more complex engineering.
  • Steel price is based on tonnage, often making universal beam rafters more expensive than web trusses which are lighter in weight.
  • Steel for a curved roof structure requires special processing & bending. Installation of these structures can be more technical and many installers have only installed standard design frames. Both these reasons can make a curved design structure more expensive.
  • The type and building class of your project can vary the cost, for example, a storage complex is not subject to the same regulatory requirements as a warehouse. This is to do with the way buildings are classed in Australia, in accordance with the construction code.
  • For example, a shed for parking a single tractor may be Class 10a. A storage structure for multiple tractors could be a Class 7b (a storage building). However, if multiple tractors and other farm machines are kept there and mechanics are employed to regularly work on the machinery within the building, it would actually be Class 8 – a factory. The different regulatory requirements between these classes can result in a more complex project.
  • Gantry (overhead) crane requirements: more structural engineering is needed to provide adequate strength for safe crane operation.
  • Extensions – building on to an existing structure often brings a host of legacy issues to deal with.
  • Irregularly shaped buildings – they can look great and be the perfect choice for your business, but non-standard sizes and custom-order parts can add to the cost.
  • Skillion roofs cost more and are less efficient as there is no inherent strength in a skillion – it requires heavy-gauge members and more bracing to make it strong.
  • A steep roof pitch requires more material, as the distance from the bottom of the roofline to the peak becomes longer as the angle increases. This means more cladding and longer members.
  • All COLORBOND® – this is popular and looks very slick, but does cost more than plain ZINCALUME® cladding.
  • Powder-coated roller shutters – this is an additional process that costs more time and money.
  • The inclusion of fire walls will add to the cost, as there are stringent building code requirements when it comes to fire protection.
  • Concrete dado walls – concrete is a lot more per square metre than plain ZINCALUME® or COLORBOND®.
  • High-quality insulation costs more, and insulating the walls, as well as the roof, will bump up the cost.

What Drives The Cost Down?

  • Removing extras – you can streamline your build by skipping things like roller shutters, windows, special facades, awnings and custom components. It’s worth noting however that some of these may be required to meet planning schemes.
  • For example, facades are sometimes a planning requirement.
  • Securing a property with the least overlay or covenant requirements – if you haven’t already got your land squared away, this is a great way to ensure an easier, simpler build.
  • Smaller clear spans (under 36m): if you make your structure longer rather than wider, this creates a simpler design.
  • Web truss rafters – the simplest approach to supporting your roof.
  • Opting for a standard gable roof, with a standard pitch – this is cheaper than engineering a very steep roof or a skillion roof.
  • Building a freestanding structure (once you connect to other buildings, things can get complicated)
  • Choosing a ZINCALUME® roof – cheaper than COLORBOND® and still a good option.
  • Standard galvanized roller shutters – skip the powder coating to save on cost.
  • No dado walls – simple steel walls are quicker and easier to install.
  • No fire wall requirements – again, easier to engineer and build than the alternative.
  • Using cheaper alternative insulations and only insulating the roof, not the walls.

Why Are Some Companies So Expensive?

Now that you have a handle on the physical components that bring costs up or down, let’s dig into the intangible elements that also impact the cost of a commercial building.


Along with components and labour that can be easily measured in dollars or hours, there are other benefits to choosing one building company over another.


Some more expensive companies will offer better consultative services, more inclusions, and a true partnership approach, rather than approaching your project as a ‘tick and flick’ job. A high-end building designer will make sure your project is fit for purpose and will guide you through making the best possible decisions.


Additionally, some companies use better quality raw products such as Australian steel, hot-dip galvanised frames, and provide superior engineering.


A top-end company will also put more focus on the individual client rather than volume sales, so rather than trying to sell cheap steel sheds to as many people as possible, a specialised company will be structured for higher margins but less volume, so they can take more time to ensure the project is perfect.


Design and construct contracts can vary from business to business due to different designs, so more elements may be included in a more expensive proposal.

Why Are Some Companies So Cheap?

At the other end of the spectrum are commercial structure builders that offer a more budget-friendly approach.


Cheaper companies are unlikely to offer any kind of consultative services, meaning you’re left to your own devices to work through approvals and Council liaison. Some suppliers only supply sheds as kits, meaning you need to source a builder who is willing to put your building together from scratch.


This can be a good option if you are on a very tight budget, are a very experienced owner-builder, or you have contacts you know will be able to build your kit to a good standard.


When it comes to overall quality, there can be a big difference between suppliers. Some can cut corners by offering lean engineering that barely meets requirements, and opt for cheaper standard features like painted frames and imported low-quality steel.


In contrast to bespoke builders, lower-priced shed companies often focus more on high volume sales at low margins, meaning they need to sell more standard designs and use repeatable processes to turn a profit. This means that they will likely have a set engineering design, which might not actually meet your business requirements.


As covered in our article on designing a commercial structure, it’s critical to make sure the building actually serves the needs of your business, both now and in the future.

Where Steelcorp Fits

If you’re looking for a budget or entry-level product then we won’t be a good fit, as we aren’t the cheapest steel structure out there.


Likewise, if you’re based in Northern NSW or Queensland then we won’t be a good fit as our installer network doesn’t stretch to those regions: we concentrate on Victoria and the southern parts of NSW.


If you’re happy with a standard, off the shelf structure, a Steelcorp building will probably be over-engineered for your needs. We specialise in custom builds and design every structure from scratch, so our buildings cost more than an off-the-shelf supplier.


However – if you’re looking for a personalised, consultative approach and a high-quality custom design that will suit your needs for decades to come, we’d be happy to hear from you!

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