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The scope of ROI on Relocation of a Pre-Engineered Building

Ever wondered what if it was possible to lift an entire building, dismantle it and set it up in another location.  

Not rhetorically, but practically.

Well, if you opted to build a Pre-Engineered Building then it's possible!

I have briefly discussed in one of my previous blogs about the Return On Investment or ROI in a pre-engineered steel building. Today we are going to discuss the intricate details involved in the relocation of a PEB structure and the possible ROI you can get through it. 

   • Is there any ROI possible in an already constructed PEB? Or is it possible to dismantle the building and rebuild at another place?

The answer is Yes. 

Pre-engineered steel buildings rarely involve any fabrication. In the construction of PEBs, steel sheets are assembled by nut and bolts on the site of construction. Therefore it is possible to dismantle the building and rebuild it at a new location. 

   • You may wonder whether this expenditure involved in relocation is the cost or the cost-benefit? 

Well, it's the cost-benefit. 

This is because your investment on the building, which is approximately 90% of the cost of the entire PEB can be reutilised. So it's not the cost and is rather the cost-benefit. 

The cost benefits have to be worked out on a project-by-project basis and would depend upon factors such as - 

1. Size of the PEB - 
Pre-engineered steel buildings can be of varied sizes depending upon the purpose of building them. Hydra and cranes are used to lift objects during the construction and dismantling of the PEB. The size of the crane and hydra also vary with the size of the building and so does their cost. The cost of a crane or hydra is directly proportional to its size. 
So this cost can vary from project to project depending upon the size of your PEB. 

2. Complexities involved in the Relocation of the PEB - 
The complexities involved in the assembling or the relocation of a pre-engineered steel building generally involves the tools, agencies and manpower required for the execution of the project. These complexities involve the number and types of members involved in the relocation procedure. This can alter the cost of relocation and thus the Return On Investment.

3. Distance of new location - 
The Return On Investment that you can get in the dismantling and relocation of your pre-engineered steel building depends on the distance between the current location of your PEB and the new location where you want to rebuild it. This is mainly because of the transportation cost. 
The greater the distance between the two locations, the more will be the transportation cost. This will in turn increase the expenditure on relocation and decrease the probable ROI. 

4. Life of the old building - 
The Return On Investment also depends on the life of the old PEB, that is, the number of years the old building has been in use. Judging by the strength of the old PEB you can wish to re-strengthen the new building to increase its life and so on. This can increase the cost of relocation of the pre-engineered steel building to the new location. 

5. Location of old and new building - 
Several outside agencies and resources are involved in the construction or relocation of a pre-engineered steel building. You can check my previous blog for more information on the outside agencies required for the successful construction of a PEB. 
The cost of dismantling and relocation of the pre-engineered building also depends on the requirement and availability of the resources involved in the process and can alter your ROI significantly. 

Besides the above-mentioned costs that can be directly calculated, there are some terms and conditions applied that can be considered as hidden costs. 

How to minimize hidden costs - 

1. Use correct methods to dismantle a PEB - 
The construction or dismantling a PEB requires skilled labour and safety precautions. You must use correct methods of dismantling to ensure all major materials of the building can be reused and does not lose its existing strength or value. 

2. Maintenance of Steel Sheets - 
Steel sheets are the foundation component of a pre-engineered steel building. But while dismantling the PEB by unscrewing the nuts and bolts, the sheeting holes can get big. This can damage the steel sheets making them unsuitable to be reutilised. This the replacement of the sheet may be required increasing the cost of relocation of the PEB. 

3. Maintenance of Accessories - 
Several accessories are installed in a pre-engineered steel building. This is either to increase the aesthetic value of the PEB or for the benefits of the residents or workers. But these accessories can get damaged very easily if not taken proper care while dismantling the PEB. 
It's often considered that the accessories become a total waste on dismantling a PEB. But that is not true. At least 50% of the accessories can be re-utilized even after dismantling a steel building. So accessories should be properly maintained. 

4. Repacking for Transportation - 
Relocation of a pre-engineered steel building involves shifting of the materials. While repacking or arranging the materials for transportation to the new location of construction, proper care must be taken to avoid any kind of damage. This is to make sure that you get more ROI and incur less expenditure. 

These are just a few points to make sure that you get the maximum Return on Investment on the relocation of a PEB. Hope this would be helpful. 

Adi Durga Steel Raipur is one of the leading steel manufacturers in Eastern India. We have been in the steel industry for the last 30 years and have worked on more than 250 pre-engineered steel building projects in various private and government sectors. With the help of our experience and advanced technology, we make sure to deliver safe, efficient and affordable constructions that would satisfy our customer's structural and aesthetic needs. 







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