The ‘kit price’ quoted for a steel building is only one line of the total installed cost — foundation, erection labor, delivery, permits and site work are typically priced separately, which is why two buildings with an identical kit price can end up with very different total costs.
What Separates Kit Price from Installed Price
Treat any single quoted number with caution until you know exactly which cost components it includes.
Kit price. Covers the factory-fabricated structural package — frame, cladding, fasteners and standard doors/windows — plus the engineering drawings needed to permit and build it; it is typically the single largest cost line but rarely the whole project cost.
Foundation. Priced separately because it depends on the site’s soil conditions and the building’s actual column reactions, not on a fixed percentage of the kit — the same kit can need a modest foundation on good soil or a significantly more expensive one on poor soil.
Erection labor. Getting the kit off the truck and into a standing, weathertight structure requires a crew, and often equipment such as a crane, boom lift or forklift — a cost that is quoted separately from the kit and scales with building size and site access.
Delivery, permits and site work. Freight to the site, permit fees, and site work such as grading and utility connections are additional line items that vary by location and existing site conditions far more than they vary by kit design.
Cost Component
Typical Share of Total
Building kit (frame, cladding, fasteners, engineering)
Often the largest single share, roughly 40-50% on typical projects
Foundation
A meaningful but smaller share, driven by soil and site conditions
Erection labor & equipment
Adds significantly on top of kit price, more for larger or less accessible sites
Delivery, permits & site work
Remainder, highly dependent on location and existing site conditions
Frequently Asked Questions
Is the kit price the total cost of a steel building?
No. The kit price covers the structural package only. Foundation, erection labor, delivery, permits and site work are typically additional, and together they can add substantially to the kit price alone.
Why do two quotes for the ‘same’ building differ so much?
Usually because one quote is kit-only and the other is a turnkey (installed) price that includes foundation, erection and site work — always confirm exactly which cost components a quote includes before comparing two numbers.
What drives the biggest cost swings beyond the kit itself?
Site conditions (soil, access, existing utilities), local labor rates, and how much of the erection and site work is included in the quote — these vary far more by location and site than the kit price does.