Facts are facts. Steel prices are definitely on the rise again after holding firm for many months. Check out this blog post from one of our most reliable sources, Steel Market Update.
Nucor, one of our suppliers, has adjusted their prices 4 times in the last two weeks. There is not much we can do about the price of steel, but here are a few tips for building buyers to keep in mind when the market gets volatile.
1. Be decisive. Once you know prices are on the rise it is wise to confirm your orders as soon as possible. Buildings are estimated based on the current per-ton price of steel. Confirmed orders don’t change once the contract is written and ordered.
2. Watch out for this buzz-word, “Steel Surcharge.” Some companies try to hide an extra fee in their contracts to account for steel price fluctuations. Good companies don’t use this tactic. Your confirmed order with deposit paid should lock in your price through delivery of your building. The only valid reason for a price increase is if you make a material change to your order. New materials would then be ordered based on that day’s steel prices.
3. The flip side is that when prices start to fall, companies that use the steel surcharge should rebate you by the same proportion. That never seems to happen.
This aspect of buying a steel building can be confusing, especially if this is your first time. The Construction Advisors at Premier Building Systems are always available to help you navigate this process and give you straight answers, even if you are buying a building from someone else. We want your experience to be the best it can be. After all, you’re not just buying a building, you are building a solution.
What can we help you build today?