STRUCTURAL STEEL · ENVELOPE AND STRUCTURE · FIXED BY STEP 03

The recoat argument comes back to you at closeout

The frame was open through a wet winter, there's rust bloom on the columns, and now the question is whether shop primer was supposed to hold up that long.

WHY IT'S A STRUCTURAL STEEL PROBLEM

Your product stays outdoors, unfinished, for as long as somebody else's schedule takes to close the building, and it gets judged against a spec written for a shorter window. No other package is held to a durability standard set by the delay of the trade that follows it. The cost comes back months after your job closed, which is why it usually disappears into overhead with no cost code open to catch it.

WHAT IT COSTS

The size of it

A touch up or recoat mobilization inside an enclosed building runs with lifts and a supervisor, and it gets priced at closeout against retention that hasn't been released. Absorbed into overhead, it raises the rate every other job in the shop has to absorb, and no report tells you so.

OVERHEAD AT $1M–$5M
15%
CFOS target 14% for structural steel.
GROSS MARGIN AT $1M–$5M
23%
CFOS target 25.5% for structural steel.
NET PROFIT AT $1M–$5M
8%
CFOS target 11.5% for structural steel.

Shop primer protects steel between fabrication and enclosure, and that's the whole job it was specified to do. When the envelope slips and the frame is exposed through a season, surface rust appears and the conversation turns into a claim that your coating failed. The same seam opens with spray applied fireproofing, where SFRM adhesion depends on the primer, so an adhesion and cohesion test failure at closeout gets argued between you and the fireproofer with neither party clearly responsible. By then the building is enclosed, so the fix takes lifts, supervision, and a crew working inside finished space.

WHAT TO DO

Three moves, in order

STEP 01
Photograph and date the frame at erection completion, close ups of primed surfaces included, and send the set to the GC with a note on the exposure duration that primer covers.
STEP 02
Write the exposure limit into the proposal, listing the primer product and the weeks it's rated for, and price extended exposure as a unit cost per ton.
STEP 03
Keep a callback cost code open on every job for twelve months after erection so recoat and touch up hours hit the job that caused them.
QUESTIONS

What structural steel owners ask

Who pays to recoat shop primer that rusted before enclosure?

The frame was open through a wet winter, there's rust bloom on the columns, and now the question is whether shop primer was supposed to hold up that long.

What does it cost?

A touch up or recoat mobilization inside an enclosed building runs with lifts and a supervisor, and it gets priced at closeout against retention that hasn't been released. Absorbed into overhead, it raises the rate every other job in the shop has to absorb, and no report tells you so.

What do I do first?

Photograph and date the frame at erection completion, close ups of primed surfaces included, and send the set to the GC with a note on the exposure duration that primer covers.

What are structural steel contractors supposed to be making?

Structural steel runs 23% gross margin, 15% overhead and 8% net profit before taxes at $1M–$5M. The all-trade average is 7%, so this trade is 1 point above it. The CFOS target is 11.5%.

Which part of the system fixes it?

The step is number 03, overhead calculation. What indirect cost really comes to at your size, and the rate your estimating template should be using. It comes from chapter 3 of CONTROL: The Construction Financial Operating System.

OR HAVE IT HANDLED

Everything on this page is something you can install yourself, andCONTROL is the order to do it in. If you would rather buy the finished result, SPM The Construction CFO does this work for structural steel contractors as a service. It is a separate firm, Sulphur Prairie Management, LLC, run by the same author.

What a fractional CFO does for structural steel contractors

AUTHOR
Josh Luebker
JOSH LUEBKER
MASTER ELECTRICIAN · 150+ PROJECTS · $2.1B+ MANAGED

Wrote CONTROL, the 8 step system behind these figures. More about the author.

8 Steps 60 Days

CONTROL is the full system, written for commercial subcontractors from under $1M to $100M. It's out now. 8 steps, 6 working templates, and the order they install in. $9.99 ebook, $24.99 paperback.