How Do I Price My Steel Erection Services?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 12
- 2 min read
Pricing steel erection services can be challenging because it involves multiple cost factors and market considerations. Setting the right price ensures profitability while remaining competitive in your region.
In addition to these factors, Wexford Insurance helps steel erection contractors understand how insurance costs impact pricing strategies. Proper coverage not only protects your business but also builds trust with clients and meets contract requirements.
Why Pricing Strategy Matters
Accurate pricing helps you:
Cover operational costs
Maintain healthy profit margins
Win competitive bids without undercutting your business
Factor in risk management and insurance expenses
Key Factors to Consider When Pricing Steel Erection Services
1. Labor Costs
Steel erection requires skilled labor such as certified welders, crane operators, and safety supervisors. Calculate:
Hourly wages
Overtime rates
Payroll taxes and benefits
2. Equipment and Crane Usage
Include costs for:
Welding machines
Safety gear
3. Material Expenses
Steel prices fluctuate based on market conditions. Always:
Monitor steel market trends
Include delivery and handling charges
4. Job Complexity
Projects vary in difficulty:
Design-build projects require more planning
Large-scale steel buildings involve higher labor and equipment costs
Retail construction may require faster turnaround times
5. Travel and Transportation
Factor in:
Fuel costs
Truck maintenance
Long-distance project logistics
6. Overhead Costs
Include:
Office expenses
Administrative staff salaries
Marketing and business development
7. Insurance Premiums
Insurance is essential for compliance and client trust. Coverage includes:
Estimated Annual Cost: $10,000–$30,000 depending on business size
Pricing for Different Project Types
Design-Build Projects – Higher planning and coordination costs
Metal Frame Construction – Moderate complexity, competitive pricing
Retail Building Construction – Fast timelines, premium pricing
Large-Scale Steel Buildings – Significant labor and equipment investment
Final Thoughts
Pricing steel erection services requires balancing costs, market rates, and risk management. Whether you’re a Design and Build Contractor, Metal Building General Contractor, or Steel Building Construction Specialist, incorporating insurance into your pricing strategy ensures compliance and profitability. Wexford Insurance provides tailored coverage to support your business growth.
Contact us today.
