How to Spot Red Flags When Choosing a Steel Building Contractor
When it comes to steel building systems, not all general contractors are the same. Here are some red flags to watch out for as you make your decision. We’ve saved the biggest one for last!
Steel building systems, also known as pre-engineered metal buildings or PEMBs, are renowned for their versatility and durability, offering cost-effective solutions for commercial, industrial, agricultural and even government buildings. Engineered for efficiency, PEMBs save time, reduce maintenance, and can easily be expanded, making them a smart, long-term investment for businesses and property owners alike.
While pre-fabricated steel buildings are designed for straightforward assembly, most projects require professional help. Hiring an unqualified or unreliable contractor to erect your steel building system can lead to costly setbacks that will directly impact build time, budget, and overall satisfaction with your investment. Yet, choosing a contractor can feel overwhelming with so many options available. So, how do you decide which one is right for your project?
Why Are General Contractors So Important to the Success of a Steel Building Project?
Pre-engineered metal buildings are fabricated off-site and delivered to the build site with all necessary components. Still, successful assembly requires an experienced professional to manage logistics, compliance, and quality control throughout the entire process. A general contractor’s job is to oversee the project from start to finish, including applying for permits, coordinating inspections, and managing the construction process, ensuring your metal building system is completed on time, on budget, and up to code. Depending on the scope of work, they may also hire and supervise subcontractors for tasks such as excavation, site preparation, plumbing, electrical work, and other related services.
Is a General Contractor and a Building Erector the same thing?
It’s easy to confuse the roles of General Contractors and Building Erectors, so let’s begin there. If you have a commercial or industrial project and/or need help securing permits and overseeing subcontractors for electrical, plumbing, and other services, we recommend hiring a General Contractor. If your building is a typical agricultural building or residential RV building, a skilled erector should be sufficient. The right choice depends on the size and scope of your project. Click here for more clarification.
Here are some red flags to be on the lookout for as you search for the right general contractor for your pre-engineered steel building project. We saved the biggest red flag for last!
Red Flag: The Contractor Does Not Have Experience with Steel Building Systems
Erecting a steel building system is a unique process, unlike any other structure, and your project deserves someone with knowledge and experience with this type of construction.
A contractor with expertise in steel building construction is more likely to make informed decisions, work efficiently, and anticipate potential problems that may arise during the process. Ask to see samples of their work with prefabricated metal building systems and review their portfolio of completed projects to see if they have successfully built structures similar to yours. If their portfolio is limited to wood-frame or residential projects without steel, that is a potential red flag.
Red Flag: Engaging in Aggressive Sales Tactics
These sales tactics are not only unnecessary but also a major pet peeve of ours. Yes, steel prices can fluctuate, but credible contractors won’t pressure you into rushed decisions. A trustworthy professional recognizes what is at stake when you are purchasing a prefabricated steel building system and respects that you need time to review bids, compare options, and ask questions.
If a contractor insists you “sign today to lock in the price” or relies on scare tactics to push you forward, it’s a sign they’re more focused on closing a deal than on your project’s success. The right contractor will treat due diligence as an essential step in the process and respect your timeline, rather than manipulate it.
Red Flag: The Contractor’s Bid Seems Too Good to Be True
A metal building is an investment meant to last for decades, so don’t assume the lowest bid automatically offers the best value. Paying a little more for quality construction that meets local code requirements is far better than cutting corners on a poorly built structure that runs over budget and past a deadline.
Always shop around and get at least three competitive bids from contractors that you feel are best suited for the job. Look for detailed, transparent pricing that clearly breaks down the costs of materials, labor, site preparation, and contingencies. Be cautious of vague proposals, one-line totals, or bids that seem “too good to be true”; they often hide unpleasant, costly surprises later.
Red Flag: The Contractor is Not Familiar with Local Building Codes and Permits
A good contractor should be well-versed in local zoning laws, building codes, and permit requirements. If they expect you to “handle all that yourself” or appear uncertain about local regulations, that’s a major red flag. The right contractor will ensure your steel building complies with state and city codes, protecting you from costly fines, penalties, or legal complications down the road.
Always confirm that your contractor understands the required permits and can secure them on your behalf.
Red Flag: The Contractor is Unwilling to Provide References or Past Projects
If you ask for references and hear excuses like, “We don’t give out references” or, “Our work speaks for itself,” take it as a warning sign. A trusted contractor will gladly connect you with previous clients or showcase completed projects. Always request references from past clients with similar projects and follow up. These conversations provide valuable insight into the contractor’s quality, expertise, and professionalism.
Red Flag: You Can’t Find Any Online Reviews or Information
Not all contractors are digitally savvy, but most reputable companies or professionals will have some kind of digital presence – whether it’s a social media profile, a website, or a business listing – to showcase their services, past project profiles, success stories, and other relevant details.
Check for customer reviews and ratings on platforms such as the Better Business Bureau, Metal Building Contractors and Erectors Association (MBCEA), Angi, The Blue Book, and others.
Red Flag: Poor Communication
A steel building project requires close coordination among the manufacturer, contractor, and local officials, making clear communication essential. If you notice delayed responses, unprofessional emails, or vague answers about timelines, take it as a serious warning sign. You have the right and the responsibility to understand the process, so work only with a contractor who communicates promptly, proactively, and transparently.
Before committing, confirm that their communication style meets your expectations and ask about their installation plan and construction timeline to ensure you stay informed every step of the way.
Red Flag: The Contractor Will Not Sign a Contract
An established contractor understands that written agreements protect both parties and serve as a roadmap for the project. Once you’ve selected a contractor and agreed on price and terms, get everything in writing, even if your state doesn’t require a contract.
Your contract should outline individual expenses, required materials, warranties, workmanship, and any equipment rentals to help you stay on budget and avoid surprise markups. Equally important: document everything. Keep records of calls, emails, and in-person conversations, and take photos throughout the project (before, during, and after construction). A detailed paper trail will protect you in the event of any issues that may arise.
Bottom line: Always get it in writing and never rely solely on verbal promises.
Red Flag: The Contractor Isn’t Licensed or Insured
While all of the red flags outlined in this post should give you pause, we saved the worst for last. Hiring a contractor who isn’t fully licensed or insured puts your entire investment at risk. You might assume every working contractor would meet these basic requirements, but you’d be surprised.
Find out if they are licensed. A reputable contractor should be licensed in your state, bonded, and insured (liability and workers’ compensation). Confirm they hold the proper professional licenses for commercial construction and design, and that they comply with OSHA and state construction regulations. Licensing requirements vary by state; for example, in Oregon, anyone working in construction for compensation is required to hold a license. In contrast, in Idaho, contractors are not licensed at the state level but may require approval from city or county authorities. Check your state’s requirements before committing.
Ask if they are fully insured. A trustworthy steel building contractor will carry both liability and workers’ compensation insurance, and should have no problem providing proof. If they hesitate, dismiss your request, or dodge the question, take it as a serious red flag and move on. Documentation protects both you and the contractor, and a professional will understand that.
Contractors are critical to the success of any steel building project, so take time to thoroughly vet them before signing an agreement. Don’t risk your investment by automatically choosing the cheapest or first contractor you find. Instead, look for someone with proven experience in prefabricated steel buildings, a solid reputation, a portfolio of similar projects, transparent pricing, and the proper licenses and certifications.
Contact Pacific Building Systems (PBS) at 800-727-7844 to learn how we can help make the steel building construction process seamless.
About Pacific Building Systems (PBS)
PBS is the premier metal building component manufacturer in the Pacific Northwest. Whether you’re starting from scratch with a metal building structure or adding metal roofing or metal siding to an existing structure, we can help. For over 60 years, we’ve provided high-quality, affordable steel building components to a wide range of industries, including industrial, commercial, agricultural, aviation, government, and community sectors. You’ll notice right away what makes us different: our team. We’re a family-run, full-service provider with unparalleled experience and innovation.
Ready to get started?
We have what it takes to make your next project a reality.
Contact a project consultant today.