Contract Review for Structural Steel Subcontractors
Contract analysis for steel erectors and fabricators. Forge stronger contracts for your steel business.
$200K-2M+
Average Contract Value
8-15%
Typical Profit Margin
50-65% of contract
Material Cost
Risks Specific to Structural Steel Contractors
Erection Sequence Delays
Steel erection depends on foundations by others. Delays outside your control affect your schedule and costs.
💰 Mobilization/demobilization: $15K-50K per occurrence
Connection Responsibility
When engineer-designed connections fail, who's liable? Many contracts shift connection design liability to fabricators.
💰 Connection repairs: $25K-200K
Tolerance Disputes
Steel tolerances (plumb, level, alignment) are often disputed. Unrealistic tolerances lead to costly corrections.
💰 Tolerance corrections: $10K-75K
Material Cost Escalation
Steel prices are volatile. Long-duration projects with fixed prices expose you to material cost increases.
💰 Price increases: 5-25% of material cost
Common Contract Traps for Structural Steel Contractors
- Connection design liability on fabricator
- Tolerances tighter than AISC standards
- Fixed pricing despite material volatility
- Responsibility for delays by others
- Multiple mobilizations at no additional cost
- Touch-up painting included regardless of damage by others
Industry Standards We Reference
Our analysis incorporates guidance from AISC (American Institute of Steel Construction) and industry-standard contract practices when flagging issues specific to structural steel work.
SubShield helps ensure your contract doesn't conflict with standard structural steel trade practices.
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Frequently Asked Questions
Who is responsible for connection design?
Typically the engineer of record designs connections. If you're delegated connection design, ensure you have proper E&O insurance and the contract clearly defines design responsibilities. Never assume design liability without compensation.
How do I protect against material price increases?
Include material escalation clauses for projects over 6 months. Tie pricing to published indices (like AISC cost index). For fixed-price contracts, buy materials early or include escalation allowances.
What tolerances should I accept?
Reference AISC Code of Standard Practice. Don't accept tolerances tighter than industry standards without additional compensation. Document that tolerance requirements are for structural purposes, not aesthetic.