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When planning for a steel building project, you may find it beneficial to consider the differences between a broker and a contract manufacturer.
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. Low prices, however, sometimes do not fulfill your needs. In order to maximize profits, brokers must obtain the least expensive materials available to fill the order. They will not offer much, if any, assistance to the buyer. You may find yourself with 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 require significant additional time to assemble. Brokers usually operate out of a phone room. There is no guarantee that they are familiar with and knowledgeable about the product they are selling. Their job is just to sell.
Components such as doors and windows are necessary to complete a building. Brokers may include them in your building package but the quality may be questionable. You should ask for these in commercial grade quality or a cheaper substitute. 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. 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. Always ask to be sure 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 has their product specifications on file with different fabricators. These specifications are pre-determined and constructed at the most cost efficient and proximate locations. Contract manufacturers sell precision engineered products. Normally these buildings are in bolt together form and require no welding. A contract manufacturer allows the customer to plan the 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 an assistant to help you with the proper building codes, help with the site plans examiner, recommend erectors, and acquire architectural renderings, if necessary, to help with code approvals.
Contract manufacturers provide maximum contact and high service. The customer is in control of their project from budget to sizes, added options to chosen erector. There are no hidden costs to the project. The customer can build a solid new steel building in the most cost-effective manner possible by using a contact manufacturer.
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