Reducing Material Costs for Commercial Structures
“The price was outside of the client’s budget so they are reassessing the feasibility of the project.”
“Progress has stalled – every tender submission was almost double the client’s expectations.”
“Are you able to identify any cost-saving ideas? The client needs to shave 30% of the overall project costs.”
Sound familiar?
Balancing costs with client expectations is an ongoing challenge, but with the right team in your corner, you can achieve an efficient, cost-effective design without completely sacrificing design aesthetics.
CONTENTS
Project Builders: Here’s How to Reduce Material Costs for Commercial Structures
IN BRIEF:
- Inefficient structural designs are a major factor in cost blowouts, creating a situation where unnecessary steel is specified into the design.
- Smart engineering and minor design adjustments can lead to significant material and environmental cost savings – without compromising strength and rigidity.

- We have seen this in action in several recent projects, achieving up to 26% savings on material cost, thanks to revised structural designs that are more efficient.
What Causes Building Design Costs to Blow Out?
Project builders constantly face the challenge of keeping their clients happy while minimising project costs. Steelcorp’s Shane Barker highlights that this issue is prevalent across the construction sector, particularly in industrial and commercial developments.
“Residential structures are often emotionally driven, so these clients can sometimes be compelled to stretch the budget to achieve a desired result. A commercial or industrial building, on the other hand, is usually much more financially driven, with clients rationalising purely based on cost versus benefit,” explains Shane.
“This mindset can put the project builder in the precarious position of having to deliver the best possible structure that meets regulations, adheres to the architect’s design intent, and stays on or under budget.”
Shane notes that inefficient structural designs are a significant contributor to cost blowouts.
“We see far too many over engineered buildings, weighed down with loads of unnecessary steel. Structural engineering that doesn’t focus on efficiency can push material costs right up, potentially costing the builder the entire job if they are unable to get the project over the line. There’s also the environmental aspect – think of the positive impact on our natural resources if every project used just a little less steel.”
- Shane Barker, Steelcorp
How to Save on Material Costs Through Smart Engineering
Efficient designs prioritise cost-effectiveness and strength without unnecessary material use.
For instance, Steelcorp recently achieved a 22% reduction in structural steel tonnage by making three logical design adjustments. A national bathroom product supplier approached us with drawings for a large roof canopy to be added to their existing property. However, the original structural engineering for the 900m² canopy used heavy UB rafters, unnecessarily increasing the steel tonnage and cost.
Our engineering team re-evaluated the design with efficiency and strength in mind. By replacing UB rafters with open web truss rafters, we achieved a 22% material cost saving. Using less steel not only reduced costs but also had a positive environmental impact by lowering the raw materials required for steel manufacturing.
“Making minor concessions to the initial design of your structure without compromising on its strength and rigidity can save thousands. Of course, the structure needs to be strong and structurally sound – but inefficient designs are one of the main causes of cost blowouts at the design stage.”
- Shane Barker, Steelcorp
Minor Design Concessions = Big Savings
Partnering with an experienced structural engineering team is key to achieving designs that satisfy both builders and clients.
Switching from complex, over-engineered plans to simpler designs can yield significant cost savings. A recent school sports cover project illustrates this concept perfectly. By replacing a costly curved roof with a straightforward gable design, the project cost aligned with the approved funding, ensuring the project could proceed.
“Adjusting the project scope to fit budget constraints is one of the areas where we can offer advice,” says Shane. “Efficient structural engineering is our specialty, and in this case, it allowed the school to enjoy a shaded play area when the project might otherwise have been cancelled.”
The assumption that more steel equals a stronger structure is misleading. Over-engineering often results in unnecessary expenses without delivering additional value.
“Designing everything using universal beam columns and rafters is a surefire way to increase your steel tonnage. However, in many builds, this practice simply isn’t warranted,” explains Shane.
For example, in a recent 1,000m² commercial warehouse project, the original design relied heavily on UB columns and rafters, resulting in an excessively heavy and costly building. Our team revised the design, opting for efficient open web trusses instead, delivering a 26% material cost saving.
Don’t Let Over-Engineered Designs Derail Your Project
Inefficient designs shouldn’t stand in the way of your industrial shed or warehouse project. Get in touch with Steelcorp’s team of industrial steel builders to discover smart ways to achieve strong, cost-effective structures.
Efficient Structures, Designed for Constructability
Steelcorp has been a trusted commercial steel supplier and construction partner for over 20 years, providing Australian project builders with access to in-house design experts and engineers. Our steel construction services are designed to help you successfully deliver projects within tight budgets, balancing cost, aesthetics, and strength.
