The short answer: build a steel quote in layers: a checked take-off, material at current supplier prices, labour by operation (cut, drill, fit, weld, paint, pack), finishing and outsourced work, site and delivery costs, then a risk allowance and your margin. Write down every assumption and exclusion, and send RFIs for anything unclear before you price it.
1. Read the documents before you count anything
Start with the scope, not the drawings. Read the RFQ, the specification and any contract conditions. Look for the construction category under AS/NZS 5131, the coating system, inspection and testing requirements, delivery and site conditions, and anything that shifts risk to you, such as liquidated damages or retention. These decide how you price, so find them first.
2. Do a proper take-off
List every member, plate, fitting and bolt with size, grade, length, quantity and weight. Work sheet by sheet, check you have the latest revisions, and watch for members that appear on more than one view. Our take-off guide covers this step in detail.
3. Price the material
- Use current prices from your supplier, not last quarter's rates. Steel prices move.
- Price to stock lengths, not net lengths. The offcut is part of the job's cost unless you're sure it will be used elsewhere.
- Add consumables: welding wire, gas, grinding discs and paint touch-up.
- Add bolts, anchors and any bought-in items such as grating, handrail fittings or mesh.
4. Price labour by operation, not by the tonne
A tonne of heavy beams with simple end plates takes far fewer hours than a tonne of stair stringers and handrail. Pricing per tonne hides that. Instead, estimate hours for each operation:
| Operation | What drives the hours |
|---|---|
| Cutting | Number of cuts, section size, mitres and copes |
| Drilling and holing | Number of holes, plate thickness, slotted holes |
| Fit-up | Number of parts per assembly, tolerances, jigs |
| Welding | Weld length and size, weld category, position, inspection required |
| Surface preparation and painting | Surface area, coating system, number of coats |
| Handling and packing | Number of pieces, weight, crane time, transport |
Multiply the hours by your shop rate. If you don't know your true shop rate, read how to set your shop labour rate first. Most under-quoting starts there.
5. Add finishing and outsourced work
Get current prices for galvanising, blasting and painting, powder coating, machining, rolling or laser cutting. Remember freight to and from the coater, and the turnaround time. See how to price galvanising, painting and powder coating.
6. Add site, delivery and compliance costs
Transport, cranes, erection labour, EWPs, site allowances, travel and accommodation. Then the compliance work: ITPs, NDT, weld records, data reports and shop drawings if you're doing the detailing. These are real hours, and they grow with the construction category.
7. Allow for risk, then add margin
Keep risk and margin separate so you can see each one. Risk is an allowance for things that are uncertain: incomplete drawings, a tight program, a site you haven't seen. Margin is what the business earns. Treat them as separate lines so the discussion about price doesn't quietly eat your profit.
8. Write the assumptions and exclusions
A good quote says what's in, what's out and what you assumed. State the drawing revisions you priced from, the coating system, who supplies anchors, whether erection is included, and how variations will be priced. This protects you when the drawings change, and they usually do.
9. Check it before it goes out
- Do the tonnes and hours look right against similar past jobs?
- Is the price per tonne in a sensible range for this type of work?
- Have you priced the latest revision of every drawing?
- Has someone else looked at it?
10. Track the job against the quote
The best way to improve your estimating is to compare quoted hours with actual hours on every job. That's where you learn which operations you consistently under-price. See job costing for fabricators.
How we help
Factory Hub takes you from an AI take-off to a quote with labour by operation, live supplier pricing and finishing calculated from weight and surface area, and checks the quote before it goes out. Sent quotes lock, so changes become a tracked revision, and won quotes become jobs with the hours carried across so you can see quoted against actual.
Common questions
Should I price steel fabrication per tonne?
Per-tonne rates are a useful sense check, but pricing labour by operation (cutting, drilling, fit-up, welding, painting and handling) is more accurate, because the hours per tonne vary hugely between heavy simple members and light detailed work.
What should a steel fabrication quote include?
Material, labour by operation, finishing and outsourced work, delivery and site costs, compliance work such as ITPs and NDT, a risk allowance, margin, and a clear list of assumptions, exclusions and the drawing revisions priced.
How do I stop losing money on fabrication jobs?
Know your true shop rate, price labour by operation, use current supplier prices, separate risk from margin, and compare quoted hours with actual hours on every job.