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Fabrication job price: steel by weight, labour, markup and VAT

Cs=Msps1000N=(Cs+Mo)(1+mu100)+hlrV=Nv100T=N+V
where
Cs
steel cost (£)
Ms
steel weight (kg)
ps
steel price (£/tonne)
N
price before VAT (£)
Mo
other materials, consumables and coatings (£)
mu
markup on materials (%)
h
labour hours
lr
labour rate (£/hour)
V
VAT (£)
v
VAT rate (%)
T
price including VAT (£)
Explain this equation

Builds a fabrication price from the steel weight, other materials, labour and markup, then adds VAT.

Steel is bought by the tonne, so weight in kg times price per tonne divided by 1000 gives the steel cost. Steel and other materials are marked up together by your percentage. Labour is hours times rate. VAT is a percentage of the net, and the total adds it on.

A sum of priced parts with percentage uplifts.

Sense check: 350 kg at £950/t is about £333 of steel; with £180 of other materials at 15% markup and 24 hours at £45, the net is about £1,669, or about £2,003 with VAT.

Watch out: price materials net of VAT if you are registered. Remember cutting waste and offcuts when estimating the steel weight.

Builds a quote for a fabrication job from the steel weight and price per tonne, other materials, markup, labour hours and VAT.

kg
£/tonne
£
%
hours
£/hour
%

Enter your values to see the result.

Good to know

Use the weight calculators here to get the steel weight, and add an allowance for offcuts (the cutting list calculator shows the real waste). Steel merchants usually price by the tonne plus cutting and delivery charges. The UK standard rate of VAT is 20%; you must register when taxable turnover goes over £90,000 in any rolling 12 months (GOV.UK, checked November 2026). Work for other VAT-registered contractors under CIS may fall under the domestic reverse charge.

Common mistake

Pricing on the finished weight instead of the weight of stock lengths bought, so offcuts and kerf losses come out of your profit.

Limits

Simple build-up. Does not include overheads, plant, galvanising transport, site access or contingency unless you add them into materials or the hourly rate.

Sources

Results are calculations from the published methods and figures shown, and depend on the data you enter. Follow the welding procedure specification (WPS), BS EN ISO 15614/9606, BS EN 1090, BS EN 1993 and manufacturers’ data. Structural welds need qualified welders and engineered designs.

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