We compare the cost and terms of construction of commercial real estate with steel and precast reinforced concrete frame.
Rauta together with the Ukrainian Steel Construction Center association conducted a comparative analysis of the production or warehouse building frame construction, the purpose of which was to determine the best solution of load-bearing structures for the customer regarding cost and terms of manufacturing, delivery and installation.
A warehouse building with an area of 1,900 m2, the construction of which is planned in the Kyiv region, was chosen for the comparison of frame construction technologies. The building has a two-span layout (18+18 m) with a centrally located column axis. Consequence classe – СС2, service lifetime – 50 years.
Principal scheme of the frame
Structural solutions of the steel frame:
Structural solutions with light gauge steel frame (LGSF):
Principal scheme of a reinforced concrete frame
Structural solutions of the precast reinforced concrete frame:
Works / materials | Steel structures** | LGSF*** | Precast reinforced concrete structures*** |
Footing, th. UAH | 1,860 | 1,550 | 2,190 |
Frame structures, th. UAH | 4,355 | 4,015 | 4,702 |
Delivery, th. UAH | 187 | 140 | 326 |
Installation, th. UAH | 780 | 690 | 978 |
Total cost, th. UAH | 7,182 | 6,395 | 8,196 |
Price per 1 m2, UAH | 3,780 | 3,366 | 4,313 |
* Indicated mid-market prices including VAT as of June 2024.
** The cost of hot-rolled steel is indicated including technological waste, which is approximately 5%, and do not take into account the cost of steel for secondary structures of walls, gates, doors, windows, stairs, etc.
*** It doesn’t not include the cost of bent elements, embedded parts, secondary structures of walls, gates, doors, windows, stairs, etc.
According to the results of the analysis, the total cost of a steel welded frame is 14% less, and LGSF is 22% less than the cost of prefabricated reinforced concrete structures, which amounts to UAH 1,014,000 and UAH 1,801,000 respectively.
Significant savings in the construction budget when using steel structures is achieved due to the lower cost of welded frame structures by 7.4%, foundations by 34.5%, logistics costs by 42.5% and installation work by 20%. For LGSF, the cost savings on the frame compared to reinforced concrete structures is 14.6%, foundations – 29.2%, logistics costs – 57% and installation work – 29.4%.
The installation cost of frames is calculated for a building with fire resistance of load-bearing structures REI 15 without additional fire protection. If it is necessary to ensure the fire resistance of the load-bearing structures at the level of REI 30, steel frame might need fire protection and that will equalize their price with reinforced concrete, which in this case doesn’t not need additional protection. When the requirements for fire resistance are increased to REI ≥ 60, the total cost of steel solutions may become slightly more expensive than reinforced concrete, but at the same time other advantages of steel construction will remain.
An additional advantage of using a steel frames is the fast construction time, which as of June 2024 averaged 1.5 months compared to 6 months for a precast reinforced concrete frame. This allows the customer to build the facility faster and start returning the investment earlier.
Also, the installation of facades and roofs for a steel frames is simpler and does not require additional embedded parts, as for precast reinforced concrete structures. Due to the fact that the steel frame is 98% recycled or can be reused, the metal structure building complies with the principles of sustainable development, which adds to investment more attractiveness and increases the number of points for LEED and BREAM certification.