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If you are currently planning a steel building project, or are likely to in the near future, you may wish to carefully consider the differences between dealing with a broker and a contract manufacturer. The use of a pre-engineered steel building “no service� broker provides the lowest price on base building materials. Brokers are usually only concerned with matching the size requirements to the lowest cost (and usually the cheapest quality) building material packages available. They will run ads in magazines, local papers or on the Internet with the hopes of attracting buyers to their low prices. However, low prices sometimes come with a significant cost because in order to maximize profits, brokers must obtain the least expensive materials available to fill the order. They will not supply much, if any, assistance to the buyer. In fact, service may be limited to a pile of materials delivered to your job site, along with an assembly manual. Some brokers even charge on the back end of the project for certified blueprints and anchor bolt patterns. In some cases the buildings are not precision engineered and may take a lot of additional time to assemble. Brokers usually operate out of a phone room and they may or may not be familiar and knowledgeable about the product they are selling. Their job is simply to sell.
Components such as doors and windows are necessary to complete a building and brokers can include them in your building package. The quality, however, of these items may be questionable. You may prefer to request commercial grade quality substitutes or cheaper alternatives.
When steel prices skyrocketed in 2004, the American Institute of Steel Construction approved the use of price escalation clauses in building contracts. This was necessary if the order was not ready for fabrication promptly, so that the seller could levy a balance due for the increase in steel price from when the building was ordered until it was released for fabrication. Many companies use these clauses. You should always ask whether the price is “locked-in� for the amount of time needed to obtain approved drawings.
The use of an assisting contract manufacturer is another option. Unlike brokers, a contract manufacturer lists their product specifications with different fabricators. These specifications are pre-determined and constructed at the most cost efficient and proximate locations. Contract manufacturers sell precision engineered products and their buildings usually bolt together and require no welding. A contract manufacturer allows the customer the control of design and rigging to be added to their base building. They do not pre-assign or determine the additional accessories for the building, but usually offer these options at direct pricing. There is usually a pre-assigned assistant to help you with the proper building codes, the site plans examiner, recommending erectors, and acquiring architectural renderings, if necessary, to help with code approvals.
Contract manufacturers offer premium contact and quality service. The customer is in control of their project from budget to component sizes, desired options and the erector they want. There are no hidden costs to the project. You can expect to build a solid new steel building in the most cost-effective manner possible by using a contact manufacturer.
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