5 Ways Cold-Formed Steel and Magnesium Oxide Cut Commercial Building Costs
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.
The combination of cold-formed steel (CFS) framing and MAXTERRA® MgO boards offers a strategic solution that addresses cost pressures across multiple project phases. With recent ICC-ES certification updates, including the newly revised ESR-5194 (March 2025), this material combination delivers unique advantages that competitors can't match.
Here are five verified ways this system reduces total project costs:
1. Accelerated Installation Reduces Labor and Financing Costs
Every week saved on commercial construction creates compound savings across multiple cost centers.
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® magnesium oxide boards and cold-formed steel framing deliver measurable installation advantages. These wall panels arrive factory-cut to precise dimensions, eliminating time-consuming field measuring and cutting. Standard construction tools handle both materials, meaning no specialty equipment rental or operator training. At 20 mm (0.787-inch) thick, MAXTERRA® panels are lightweight enough for crews to handle efficiently without crane assistance. This is a major advantage when used with light gauge materials like cold-formed steel framing.
The coordinated installation sequence allows framing and sheathing to proceed smoothly without trade handoffs. This systematic approach reduces labor hours, shortens project timelines, and decreases weather exposure risk.
One project team even cut build time by 30% after switching from wood to steel framing.
Key Benefit: Faster installation reduces labor costs while shortening financing periods and general condition expenses.
2. Single-Crew Installation Eliminates Trade Coordination Costs
The most expensive delay isn't weather, it's waiting for the next trade to show up.
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.
MAXTERRA® delivers an industry-first solution that eliminates this coordination tax. The system is the only ICC-ES certified MgO flooring product approved for both wood and cold-formed steel framing systems. Standard framing crews can install both CFS and MAXTERRA® materials using consistent tools and techniques, eliminating the need for specialized trades or heavier cement board alternatives.
This dual-framing certification includes comprehensive diaphragm design data for both wood and CFS applications, giving engineers complete technical support for mixed-framing projects. The streamlined approach reduces scheduling complexity and provides predictable installation timelines, even when working with light gauge metal components.
Key Benefit: Same-crew installation eliminates trade coordination delays and reduces general condition costs.
3. Non-Combustible Classification Reduces Insurance Costs
Type I-III construction requirements turn from costly obligations into insurance savings opportunities.
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.
MAXTERRA® MgO panels meet ASTM E136 non-combustible classification and exhibit Class A interior finish ratings, 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. This comprehensive certification addresses the strictest national building codes 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.
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 Benefit: Non-combustible certification reduces insurance premiums during construction and building operation.
4. Superior Durability Eliminates Callback and Maintenance Costs
The most expensive callback isn't the repair cost, it's the reputation damage and lost referrals.
Warranty callbacks and ongoing maintenance issues destroy project profitability while damaging contractor reputations. Water damage, material degradation, and dimensional instability create expensive repair cycles that compound over time.
MAXTERRA panels utilize advanced Magnesium Oxysulfate (MOS) chemistry with multiple embedded fiberglass mesh reinforcement. This formulation provides water resistance, mold and mildew resistance, and dimensional stability without harmful chemicals. The sulfate-based chemistry addresses corrosion issues associated with traditional chloride-based MgO products.
The material combination delivers long-term performance advantages that protect contractor reputations and building owner investments. No warping, shrinking, or moisture-related movement means fewer callbacks and reduced long-term maintenance requirements. The chemical-free composition eliminates concerns about VOCs and indoor air quality issues.
Key Benefit: Superior durability reduces callback frequency and protects long-term profit margins.
5. Comprehensive Certification Accelerates Code Approval Process
While competitors wait months for material approvals, certified systems move straight to permits.
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.
MAXTERRA provides comprehensive ICC-ES certification that eliminates approval uncertainty. ESR-5194, recently reissued in March 2025, covers structural floor applications for both wood and cold-formed steel framing. The certification includes durability, structural performance, surface burning characteristics, and non-combustibility testing for compliance with 2021, 2018, and 2015 International Building and Residential Codes.
Multiple jurisdiction supplements provide additional compliance coverage, including Chicago, Los Angeles, California, and Florida Building Code requirements. This broad acceptance reduces plan review time and provides code officials with recognized documentation for faster approvals, especially when you follow industry installation practices already reflected in the ICC evaluation.
MAXTERRA®’s Environmental Product Declaration (EPD), a rarity in the MgO space, also simplifies compliance for sustainability-focused projects. It’s the only MgO product in North America with a verified EPD.
Key Benefit: Pre-approved certifications accelerate permit processes and reduce approval-related delays.
The Industry-First Advantage
MAXTERRA®'s position as the only ICC-ES certified MgO product approved for both wood and cold-formed steel framing creates a unique competitive advantage. This dual-framing certification provides system flexibility that competitors cannot match, while recent certification updates demonstrate ongoing innovation and market leadership.
The combination of speed, coordination efficiency, insurance benefits, durability, and streamlined approvals creates compound cost advantages that extend across entire project lifecycles. Smart material selection impacts every phase from permit to completion, delivering measurable value to commercial construction projects.
See what MAXTERRA® and CFS can do for your next project. Our team is ready to help you move forward with clarity and confidence.
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 11 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 by composition, not just by treatment. 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 product at nexgenbp.com/resources.
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.