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STEEL CONSTRUCTION:
ECONOMIC & COMMERCIAL FACTORS
1. INTRODUCTION
Costs of construction works can be considered in various categories. Technical costs,
relating to material and labour in completing the project, are those which can most easily
be quantified. Recurrent costs should also be considered in studying whole life economics,
and again these can be estimated. Environmental costs are more difficult to establish; there
are signs that an environmental audit will increasingly be required as a part of the
consideration given to proposed projects. Environmental aspects can be considered in
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terms of local and global effects and include issues such as appearance, safety, local
economics, use of natural resources, and energy consumption.
This lecture concentrates on the technical costs of steel construction. It deals with the topic
in a broad way. Whole life costing is dealt with first before examining the costs of
execution, which are concerned initially with total construction, leading onto structural
costs and finally economic considerations applied to individual activities such as
fabrication and erection. This sequence has been chosen deliberately to emphasise the
need to examine overall costs in an integrated manner.
2.4 Maintenance
All structures (buildings, bridges and others) should be inspected and maintained on a
regular basis. There is often a trade-off between costs associated with these activities and
initial costs. Areas which are difficult or impossible to inspect need careful treatment. In
many cases there is a trade-off between capital expenditure and life
expectancy/maintenance requirements.
For steels, corrosion and its prevention is a major concern. Cost factors associated with
corrosion prevention relate to exposure conditions, planned inspection and maintenance,
design detailing, the protection specification, and the quality of the first application.
Good detailing in fact has very little cost implication and is an important part of all
designs. For instance, arrangements which allow water to collect should be avoided and
inaccessible areas sealed (Figure 1).
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The specification for the corrosion protection system should be appropriate to the
exposure conditions expected. Although some extremely good systems are now available,
there is little point in using such systems where corrosion risks are low. This point is
discussed in more detail in Section 4.3.
2.5 ADAPTABILITY
Although it is not always possible to predict future client requirements, alterations and
extensions to projects are often carried out subsequent to the initial development. Such
projects can be disproportionately expensive. Specific provision for future alterations can
only be made if details are known at the outset, but significant savings are possible if the
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Some structures take this principle further and are designed as demountable. Such
structures are generally for short-term use such as exhibition facilities, temporary car
parks and highway crossings. With careful design the complete structure can be
dismantled and erected elsewhere.
3. TOTAL CONSTRUCTION
Total building cost is a complex issue due to the interaction of various elements. Usually
the best design of one aspect (e.g. structure) conflicts with others (e.g. services or
cladding). It is not, therefore, simply a case of optimising each to achieve an optimum
solution for the whole building, but rather the costings should be examined in an
integrated, holistic manner.
Buildability is also important. It is concerned not simply with the development of new
details or erection systems which might facilitate work on site, but with an understanding
of how design and construction can be dealt with in an integrated fashion to produce a
building which is simple, quick and cost-effective to execute and maintain. This approach
involves harmonisation of structural, service and planning grids.
At a more detailed level, standardisation, particularly of connection and fixing details, can
lead to significant economies, even if it implies some apparent wastage of materials. Coordination between different elements, such as cladding and structure, achieved by
simplicity of the interfaces between them, is particularly important. Non-typical areas such
as corner panels for cladding and edge details for floors need special consideration. All too
often these areas are ignored until execution is well under way and last minute solutions
can be both inelegant and costly.
Bridges and other structures are much less sensitive than buildings to interactions between
structural and non-structural components. However, for offshore structures for instance,
aspects such as appropriate construction sites and transparency of the structure to wave
loadings, installation procedures and fitting out all influence the total costing.
A similar discussion of the use of rigid and simple frames can be held in relation to gravity
loads. The effect of rigid frame action is typically to reduce beam sizes but increase
column sections. In general, whilst the total weight of steel is less in rigid construction,
savings are often more than offset by the increased complexity of the connections.
However there may be other considerations - reduced structural depth, the undesirability
of bracing (if rigid frame action is not used to provide lateral stability) and reduced
deflections resulting from improved stiffness. For longer spans, material savings for rigid
construction are likely to be greater. Not only does the increased rigidity become more
important in controlling deflections, but the relative saving in steel weight of beams
compared with the increased weight of columns becomes more significant.
Important advantages of steel construction are speed of execution, prefabrication and
lightness. To maximise the advantages the concepts must be followed through in the
design of the building as a whole, including cladding, finishes and services. For example
the use of smaller foundations can only be achieved if the lightness of the structure is
reflected in appropriate design of other building components. This example again
emphasises the need for co-ordinating the design of services, cladding and structure and
associated with this approach, the discipline of producing the final design at an early stage.
This approach also implies that the steelwork contractor should be involved at the earliest
opportunity as part of the project team and it also places additional responsibilities on
other members of that team to avoid late changes.
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3.3 Weather
Any construction can be affected by adverse weather. Execution programmes and methods
themselves are generally organised with this in mind. For instance when industrial sheds
are built it is normal practice to complete the frame and envelope at the earliest
opportunity, with the concrete ground slabs subsequently being cast within a relatively
controlled and sheltered environment. Multi-storey construction utilising composite floor
decks offers similar advantages of rapid isolation from the worst effects of adverse
weather.
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3.5 Foundations
Foundation costs are an important factor in the overall economics of building construction.
For small scale buildings on sites with good foundation conditions, simple foundation
solutions are likely to be suitable. Where foundation loads are high and/or foundation
conditions are poor, more sophisticated and expensive solutions such as piling may be
necessary, Figure 6. In such circumstances the weight of the superstructure may be critical
and suggest a lighter, possibly less efficient form. For instance closely spaced beams to
reduce the thickness of floor slabs, which might themselves be constructed using
lightweight concrete can reduce foundation loads considerably. Steel as a structural
material is also lighter than other structural materials for a given load resistance.
4. STEELWORK COSTS
At a more detailed level the economics of steelwork construction can be affected by
decisions regarding the precise form of element, type of steel used and the method of
connection. Some of these decisions are influenced by the purchase route for the steel
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itself. For large projects, steel can be purchased directly from the mill in the exact lengths
required and in the desired grade. The price of individual structural products varies not
only with type (hollow sections are generally more expensive than open sections such as Ibeams and H-columns) but also within a product range, with little apparent rationale
behind the pricing policy. Thus selecting a section of minimum weight does not guarantee
an optimum solution in terms of cost, even for an individual element. Specifiers should
therefore be aware of pricing policies.
Small orders cannot be processed in this way and the steel is then purchased from
stockholders. In this case the steel is only available in a limited range of grades, (probably
only mild steel) and a premium is payable to the stockholder. In addition certain sizes of
standard section may not be stocked and the sections will only be available in a limited
range of lengths.
These considerations clearly have important implications for the specifier.
Where higher grades of steel are available they may offer the opportunity for improved
efficiency. For instance, high yield steel has a yield strength approximately 25% higher
than normal mild steel yet costs only about 10% more. However, where strength is not a
critical design condition, for instance in the case of very long span beams where deflection
control may be dominant, the use of high grade steel may simply be wasteful.
A breakdown of costs for structural steelwork in a multi-storey building might typically be
as follows:
steel
47%
corrosion protection
5%
fabrication
22%
erection
8%
fire protection
18%
Clearly optimising the cost of the steelwork (within an optimum solution for structure and
construction as a whole) is dependent on minimising the total cost of these contributory
elements, rather than optimising each independently. A balance is needed between
structural efficiency, simplicity of construction and building use.
It is clear that there is more potential for reducing costs in fabrication and erection than in
the steel itself. In this respect, work on site is of most importance - easier assembly is
likely to lead to overall economy. Transport is also important, not as a cost item in itself
but as an aid to more efficient erection.
4.1 Erection
Because erection is carried out in the open, often under difficult conditions, and it is the
essential interface with other construction trades, it is in many ways the most important
part of the design and execution process for a steel structure. Problems at this stage can be
costly to rectify and involve long delays to the programme. Apparently trivial issues, such
as steelwork delivered out of sequence, lack of bolts or fittings, long lead times for minor
additional items, extensive double handling of materials and misfit of members, can cause
significant reductions in construction efficiency.
Much depends on good planning. Preparation of an erection scheme should be made on
receipt of first construction issue drawings prior to detailed drawing office work by the
fabricator. At this stage items for delivery as sub-assemblies can be identified and the need
for temporary bracing assessed. Attachments for bracing should be incorporated within
initial fabrication drawings to avoid double handling of both drawings and materials.
The need for safe access for erectors must be recognised. Time can be saved and material
re-used if temporary stagings are pre-engineered and delivered with steelwork rather than
relying on makeshift methods on site.
Loose temporary landing cleats under major beams and girders, shop-bolted to columns
greatly facilitate erection. Erection drawings should be clear, unambiguous and complete,
including on a single drawing all details such as bolt sizes, weights of members, presence
of fittings, etc.
4.2 Fabrication
The size of individual components is limited by the lifting capacity of available cranes and
transportation. This applies also to other parts of the construction such as finishes and
cladding. Within these constraints however the general principle is to maximise work at
the fabrication stage and minimise work on site, pre-assembling units in sections which
are as large as possible.
Connection design and detailing which standardises details, bolt diameters and lengths
(HSFG and 8.8 bolts of same diameter should never be used on the same job) simplifies
erection and minimises risk of error. Although material and fabrication costs may be
increased marginally, savings on site far outweigh such increases. Simplicity and
repetition of frame components is related to design; for instance special fabricated sections
such as tapered beams become more economic in larger numbers.
Preferred details should be incorporated to facilitate site erection. For instance fin plates
are preferable to end plates or cleats since they enable beams to be swung directly into
position (Figure 7). Moment connections should be avoided if possible, but where
necessary the erector should be consulted with regard to the preferred type of detail.
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5. CONCLUDING SUMMARY
Costing of construction projects is a complex issue and should include all aspects
in an integrated fashion.
Evaluation of whole life costs should be encouraged rather than focusing only on
initial construction costs.
Buildability and good planning are important aspects in minimising costs.
Efficient integration of structural and non-structural items is dependent on detailed
information being available at an early stage, but is essential if efficient
construction is to be achieved.
6. ADDITIONAL READING
1. British Steel Corrosion Protection Guides.
2. Brett, P. Design of Continuous Composite Beams in Buildings; Parallel Beam
Approach. The Steel Construction Institute, 1989.
3. Owens, G.W. An Evaluation of Different Solutions for Steel Frames, ECCS
International Symposium, "Building in Steel - The Way Ahead", No: 57
September 1989, pp 6/1 - 6/28.
4. Glover, M.J. Buildability and Services Integration, Ibid.
5. Horridge, J.F. and Morris, L.J. Comparative Costs of Single-Storey Steel Framed
Buildings, The Structural Engineer, Vol. 64A, No. 7, July1986, pp. 177-181.
6. Iyengar, H. High Rise Buildings, ECCS International Symposium, "Building in
Steel - The Way Ahead", No: 57 September 1989, pp 1/1 - 1/30.
7. Copeland, B., Glover, M.J., Hart, A., Haryott, R. and Marshall, S. Designing for
Steel, Architects Journal, 24 & 31 August 1983.
8. Hayward, A.C.G. Composite Steel Highway Bridges, Constrado.
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9. Customer Led - Construction Led, Steel Construction, Vol 7, No. 1, (BCSA),
February 1991.
10. Horridge, J. F. and Morris, L. J., "Comparative Costs of Single Storey Steel
Framed Structures", The Structural Engineer, Vol 64A, No. 7, July 1986.