Updated September 3, 2026.
Commercial construction costs continue to climb, driven by labor shortages, material price volatility, and increasingly complex code requirements. While most contractors focus on material costs, the real expense drain happens during installation, coordination, and long-term performance issues.
Pairing cold-formed steel (CFS) framing with MAXTERRA® MgO boards cuts into those costs at several points in a project at once. Recent ICC-ES certification updates, including the revised ESR-5194 (July 2025), extend where the pairing is approved.
Below, three cold-formed steel fabricators describe where those savings actually show up on their own projects, and we put a number on the one developers underestimate most: financing.
Here are five verified ways this system reduces total project costs:
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1. Accelerated Installation Reduces Labor and Financing Costs
Every week you shave off a commercial build saves money in more than one place at once.
Extended construction timelines drain budgets through increased general conditions, accumulated financing costs, and weather-related delays. Traditional materials often require extensive field adjustments, specialized tools, and longer installation cycles that compound these expenses.
MAXTERRA panels arrive factory-cut, install with standard tools, and at 20 mm thick are light enough to set by hand alongside light-gauge cold-formed steel framing. That means fewer field adjustments and a faster, more predictable install.
The coordinated installation sequence allows framing and sheathing to proceed smoothly. This systematic approach reduces labor hours, shortens project timelines, and decreases weather exposure risk.
That weight advantage holds at the assembly level too, not just panel by panel. In NEXGEN’s testing with AdvanT Steel, a two-hour UL-rated floor-and-ceiling assembly using MAXTERRA subfloor panels and light-gauge CFS trusses came in around 13 pounds per square foot, against roughly 50 pounds per square foot for a conventional reinforced concrete assembly doing the same job.
“When you multiply that across three or four floors, you’re significantly minimizing project costs by eliminating the added weight, complexity, and labor associated with heavier assemblies.”
Tim Liescheidt, Managing Member, AdvanT Steel
Weight is not the only speed advantage, either: one project team cut build time by 30% after switching from wood to steel framing.
“When you pair MgO board and CFS together, the installation begins moving at a much quicker pace, but you’re still achieving high levels of fire compliance.”
Austin Porter, Director of Business Development, Symmtrex
The financing line is where this gets concrete. A construction loan charges interest on the balance drawn, which is near its peak at the end of the job, so finishing early retires the loan while it is most expensive.
On a $25 million, 18-month loan at 8%, that final month runs roughly $165,000 in interest. Shave 30 days off the back end and that is what you save in carrying cost, before a dollar of material or labor savings.
Key BenefitFaster installation reduces labor costs while shortening financing periods and general condition expenses.
2. Single-Crew Installation Eliminates Trade Coordination Costs
The costliest delays on a commercial job usually come from waiting on the next trade to mobilize.
Multiple trade coordination creates scheduling complexity that ripples through entire project timelines. Standby time, remobilization fees, and communication gaps between specialized crews can add weeks to commercial projects while driving up overhead costs.
Because MAXTERRA is the only ICC-ES certified MgO flooring product approved for both wood and cold-formed steel framing, a standard framing crew installs the steel and the panels with the same tools. No specialty trade, no wet-laid gypsum to pour and cure.
That’s exactly why one multifamily builder replaced gypcrete with MgO, to save time, avoid rework, and simplify installation.
This dual-framing certification also includes comprehensive diaphragm design data for both wood and CFS applications, giving engineers complete technical support for mixed-framing projects, with predictable installation timelines even when working with light gauge metal components.
Key BenefitSame-crew installation eliminates trade coordination delays and reduces general condition costs.
3. Non-Combustible Classification Reduces Insurance Costs
The first two levers shorten the build. The next two change what it costs to own.
The same non-combustible requirements that make Type I through Type III construction expensive can also lower what you pay to insure the building.
Commercial projects face significant insurance costs during construction and throughout building life. Builder’s risk premiums, property insurance rates, and fire load calculations all impact project economics, with non-combustible materials providing measurable advantages.
Recent clarifications to ASTM E136 didn’t change where MAXTERRA® stands: the panels meet the non-combustible classification and carry a Class A interior finish rating, with tested fire resistance and moisture resistant properties. The system qualifies for use in Types I-V construction under the IBC and all construction types under the IRC, without additional fireproofing materials or labor.
The non-combustible classification improves the building’s risk profile for insurance underwriting. Reduced fire load in building assemblies translates to lower premium calculations for both construction and long-term coverage.
“Noncombustible building systems are often viewed more favorably from a risk perspective, and some projects have experienced insurance premium reductions of up to 35% when compared to conventional assemblies. For owners and developers, these savings can continue long after construction is complete.”
Stanley Adwell, Founder and CEO, Intellisteel
In fact, steel framing has proven its fire resilience in real-world disasters, like the Southern California wildfires, where wood-framed buildings were destroyed and steel-framed structures remained standing.
Cold-formed steel’s proven performance and lower fire risk profile can significantly reduce both builder’s risk and long-term property insurance premiums. A third-party analysis even shows measurable cost savings tied to CFS framing in fire-rated assemblies. View the SFIA insurance savings report →
Key BenefitNon-combustible certification reduces insurance premiums during construction and building operation.
4. Superior Durability Eliminates Callback and Maintenance Costs
Warranty callbacks cost far more than the repair itself, in lost referrals and the reputation that brings the next job.
Water damage, material degradation, and dimensional instability create expensive repair cycles that compound over time, on top of the profitability hit from the callbacks themselves.
MAXTERRA panels use a Magnesium Oxysulfate (MOS) chemistry with embedded fiberglass mesh. That gives them water resistance, mold and mildew resistance, and dimensional stability without harmful chemicals, and the sulfate-based chemistry avoids the corrosion issues tied to older, poorly formulated chloride-based MgO products.
That stability shows up years later. No warping, shrinking, or moisture movement means fewer callbacks and less maintenance, and the harmful chemical-free makeup keeps VOCs and indoor-air concerns off the table.
Key BenefitSuperior durability reduces callback frequency and protects long-term profit margins.
5. Comprehensive Certification Accelerates Code Approval Process
When a material is unfamiliar to a plan reviewer, approval can stall for months. A fully documented, certified system does not.
Code approval delays can extend project timelines by months, particularly when officials encounter unfamiliar materials or assembly details. Complex documentation requirements and unclear compliance paths create bottlenecks that impact construction schedules and carrying costs.
ESR-5194, MAXTERRA’s ICC-ES certification, was reissued in March 2026 and covers structural floor applications for both wood and cold-formed steel framing. It documents durability, structural performance, surface burning characteristics, and non-combustibility testing against the 2021, 2018, and 2015 International Building and Residential Codes, so a plan reviewer has the paperwork up front instead of asking for it.
Supplements for Chicago, Los Angeles, California, and Florida cover the jurisdictions with the strictest additional requirements, so plan review moves faster there too.
“No matter the building type, anything from Type I through Type V, MAXTERRA MgO boards are certified by ICC-ES for code-compliance. That’s the beauty of it.”
Austin Porter, Director of Business Development, Symmtrex
MAXTERRA®’s Environmental Product Declaration (EPD) is another rarity in the MgO space: it’s the only MgO product in North America with a verified EPD, which simplifies compliance for sustainability-focused projects too.
Key BenefitPre-approved certifications accelerate permit processes and reduce approval-related delays.
The Industry-First Advantage
That dual-framing approval lets a project switch framing types without switching panels or re-doing the engineering. Add the pieces up: less material and structure, fewer trades, fewer callbacks, a shorter schedule that cuts loan interest, lower insurance every year, and a faster path through plan review.
In the scenario above, the financing savings alone run to roughly $165,000 on a single project, before any of the other savings are counted, and the insurance savings keep recurring every year the building stands.
That gives a developer something specific to bring to investors: a building that costs less to finance, insure, and maintain, with a cost story a lender can follow.
See what MAXTERRA® and CFS can do for your next project.
Questions from the Field
1. Is MAXTERRA® available in multiple panel sizes or thicknesses for different applications?
Yes. The structural floor panel is 20 mm thick and designed for strength and impact resistance, while structural wall panels come in additional thicknesses such as 12 mm and 16 mm depending on the assembly and performance needs.
2. Does MAXTERRA® contribute to LEED or other green building certifications?
It can. MAXTERRA® is the only MgO product on the market with a third-party verified Environmental Product Declaration (EPD), which supports credits in many green building rating systems including LEED.
3. How does MAXTERRA® compare to traditional gypsum sheathing in fire-rated assemblies?
Unlike gypsum, MAXTERRA® is non-combustible throughout the entire thickness; it does not rely on exceptions in the code that allow flammable paper coverings on a non-combustible core. It passes ASTM E136 for non-combustibility and E119 for fire-rated assemblies, delivering fire performance without relying on added chemicals or coatings.
4. Can MAXTERRA® panels be cut and installed using typical jobsite tools?
Yes. Both the structural floor and wall panels can be cut with standard circular saws and fastened with common screws or nails. No special tools or training are required for typical installations. You can review installation instructions for each MAXTERRA® product in our Product Resources & Technical Documents section.
5. Is the dual framing certification recognized in all states?
MAXTERRA®’s ESR-5194 includes supplements for major code jurisdictions like California, Florida, Chicago, and Los Angeles. This makes approval easier in most states and streamlines permit review across diverse regions.