Trades / Structural steel

Structural steel subcontracts: the risks and what to negotiate

Structural steel packages carry shop drawing approval, fabrication lead time and erection on the critical path. The contract decides who wears approval delays, design changes after fabrication starts and price movements in steel.

AI risk report, not legal advice. The scanner gives general information about the risks in a document. It is not a lawyer, does not know your circumstances, and can be wrong. For decisions with legal consequences, get advice from a construction lawyer.

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Where structural steel subcontractors lose money

Shop drawing approval delays

Fabrication can't start until shop drawings are approved. If the contract has no timeframe for the builder's review, approval delays become your programme risk. Ask for a review period and an extension of time when it is exceeded.

Design changes after fabrication

A change after steel is cut means scrap, re-fabrication and re-delivery. Make sure changes after approval are variations, including material already fabricated.

Material price escalation

Steel prices can move between tender and fabrication. On long jobs, a rise-and-fall clause or a fixed validity period for your price protects the margin.

Erection dependencies

Erection needs cranes, access and completed footings from others. Interruptions caused by those trades should be delay events.

Three things to push for in your departures schedule

A fixed review period for shop drawings with an extension of time if exceeded
Changes after shop drawing approval paid as variations, including fabricated material
Price validity or rise-and-fall for steel on longer programmes

The free scanner finds these clauses in your actual contract in about two minutes and writes the departures schedule for you.

What the Index says

Live figures from the Australian Subcontract Index, 90 real subcontracts. The Index holds only 4 structural steel contracts so far, under the 10-contract threshold, so these are national figures across all trades. Nothing under 10 contracts is ever shown.

100%have time bars that kill the claim entirely (66 of 66, all trades)

97%let the builder set off without notice (75 of 77, all trades)

78%have liquidated damages with no cap (31 of 40, all trades)

25 daysmedian payment terms (n=75, all trades)

5%median retention (n=65, all trades)

5 daysmedian notice window for variations (n=60, all trades)

See the full live Index →

Structural steel subcontracts by state

Queensland →Payment capped at 25 business days; payment schedule due in 15.

New South Wales →Payment capped at 20 business days; payment schedule due in 10.

Victoria →Payment capped at 20 business days; payment schedule due in 10.

Western Australia →Payment capped at 25 business days; payment schedule due in 15.

South Australia →Payment schedule due within 15 business days of your claim.

Tasmania →Payment schedule due within 10 business days of your claim.

Australian Capital Territory →Payment schedule due within 10 business days of your claim.

Northern Territory →No payment schedule step: a dispute arises when a claim is rejected or unpaid, then 90 days to apply.

Structural steel subcontracts: common questions

Who pays if the design changes after steel is fabricated?

Under a well-drafted subcontract, the builder, as a variation covering the fabricated material, re-fabrication and re-delivery. Check that approved shop drawings fix the design for the purposes of variations.

Do structural steel subcontractors have payment rights that override the contract?

Yes. Every state and territory has a Security of Payment Act that lets you make a payment claim and get to adjudication quickly, and several states cap how long payment terms can be. The state pages below set out each one.

Is the scanner free?

Yes. No account, no card. Upload the subcontract and the full report appears in about two minutes. General information, not legal advice.

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