Three ways to acquire Temporary Construction Steel

Temporary construction steel is commonly used for bracing, like falsework or shoring, and is removed before the project is finished. The cost for such temporary steel can be costly, as many contractors buy the beams outright -- In some cases it can easily amount to 30% of a construction budget. However, at Versa-Steel, we offer options to buy, rent, or buy-back temporary beams.
Upon completion of a project, the contractor is often faced with tons steel and the question of what to do with it. Do you build a fleet of temporary beams that will be used on future work? Will the size be right for the next project? What if the project is out of the normal contracting area? The issue, then, of where to store the beams or how many beams to transport back to home base can be burdening.
Unlike a cell phone or car purchase that often involves an overwhelming amount of choices, purchasing temporary construction steel, such as steel wide-flange beams for example, usually has only one apparent choice. That choice is to buy the beams outright from a steel supplier. However, at Versa Steel, there are actually three ways to acquire the steel beams.
Buy
Buying steel beams is a straightforward and well-established method of commerce. The price is clearly defined and ownership is fast and simple. However, once the project is completed, the contractor needs to either store and reuse, or sell the leftover steel.
Rent
Renting is a choice that Versa Steel offers. A rental agreement defines the legal terms as well as duration of the rental period. Some rental agreements have a "buy-out” feature, allowing for some of the rent to be applied towards a purchase. The agreement lists acceptable return conditions including, cleanliness, minimum duration, allowable rust, permitted attachments, straightness, etc.. Renting is an effective way to reduce total acquisition costs and is favored if the project will be completed in a few months. If the expected rental period goes on for more than a year, the contractor should carefully compare the costs of renting against the costs of the purchase or buy-back alternatives.
Buy-back
The buy-back option can be favored over the rental option during a long-term construction period. ln this case, the contractor and Versa Steel agree on a purchase price as well as a buy-back price. This buy-back option gives the contractor peace of mind that they will get a return on their steel investment at the end of the project, rather than scramble to sell it once it is no longer needed. The buy-back option is most cost-effective for projects lasting a year or more.
Another benefit to the buyback option is that the contractor can "extend" his budget for temporary steel by calculating the overall cost of the temporary steel (purchase price minus the buy-back price). Below is an example.
Example Buyback Scenario for Falsework Steel

Scenario

Purchase Cost

Buyback Price

Total Cost

Number of Steel Pieces Purchased

No Buy-back Option

$900,000

$0

$900,000

500

Buy-back Option

$1,800,000

$900,000

$900,000

1,000

One contractor on a large project realized that he could complete his project much sooner if he had more steel for falsework (temporary support steel). He negotiated a guaranteed buy-back rate, enabling him to double the amount of steel for his project, without spending anything additional for the added steel. With twice the amount of steel, he moved the project ahead with twice as many falsework platforms, saving time and money. Upon completion of his project, he simply returned the steel to complete the buy-back portion of his agreement. Because his buy-back price was locked-in, he suffered no risk of a change in market price and no hassle in trying to find buyers at the last minute.

Products

The New Bay Bridge-Skyway
Project

Versa supplies Heavy Falsework for the new Bay Bridge