How to Price SIPs in Your Construction Project: Step-by-Step Guide

Builders and general contractors often struggle with learning how to price Structural Insulated Panels (SIPs) in their projects. Unlike traditional stick framing, SIPs offer a high-performance building envelope, but the key to accurate pricing lies in understanding how to qualify a project and compare bids effectively. 

This guide walks you through five essential steps to properly evaluate SIPs pricing, ensuring you get a fair and complete cost estimate for your project.

Step 1: Compare Apples to Apples – Qualifying a SIPs Bid vs. Traditional Framing Costs

Pricing SIPs isn’t just about getting a number—it’s about ensuring that number includes everything you need for an accurate cost comparison.

1. Start with a detailed lumber takeoff for traditional framing. Send it to multiple lumber yards (ideally 2-3) for accurate quotes.
2. Review what's included in each quote. Are the same quantities, square footage and materials equally accounted for? Are key components missing? If delivery and transportation is included, ensure this is the case for all. 
3. Compare:
   • Lumber vs. SIPs – Ensure the takeoff includes framing, sheathing, and insulation. 
   • Accessories – Some suppliers leave out critical items like roof or wall splines, fasteners, and tape to make their quote appear lower.
   • Labor – Consider installation time and associated costs for each method.

Lumber packages may exclude high-cost items like 2x12s and 2x6s or headers and window bucks, which can create an artificially lower bid but are critical to complete the envelope. Ensure that your SIPs or Lumber quote covers everything needed for a full building envelope construction.

Step 2: Understand Labor Costs – Calculating SIPs Installation Rates

SIPs demand less labor and install faster than traditional framing. We have many case studies documenting the actual time it takes to install SIPs in the field, and this is generally 55% faster than site-framed lumber and batt assembled buildings. While the time may not vary significantly, labor rates will vary from region to region. To accurately estimate labor costs for bids, follow these steps:

1. SIPs are typically installed based on square feet of material per man-hour, rather than overall building square footage.
2. Use your own labor rate – Choose an estimated man-hours per square foot from the table below (taken from actual labor case studies) and apply your own labor rate to determine realistic installation costs.
3. Compared to stick framing labor – Framers sometimes charge more for SIPs installation, but remember:

• No separate insulation crew is needed – SIPs incorporate a solid core of code-compliant continuous insulation, eliminating the need for additional subcontractors, reducing overall project costs. 
• Less rework – SIPs are factory-engineered and reduce the need for straightening studs, shimming, and correcting framing issues before inspections.
• Less skilled labor required – Any construction team can install SIPs, they do not need to be trained framers, and generally require a smaller crew. Premier will train your team with a jobsite start in just a few hours.

Labor Installation Time Calculation

Factors impacting labor efficiency can include roof complexity—steeper or more intricate slopes can reduce installation speed—and the use of equipment, where cranes or panel lifts significantly improve productivity.  For precise labor cost estimates, always cross-check productivity rates with RS Means or local labor databases to ensure accurate bidding and to keep framing contractors aligned with industry standards.

Step 3: Break Down the Costs – Don’t Rely on Total Square Footage

One of the biggest mistakes builders make is pricing SIPs using total building square footage rather than the actual wall, roof, and floor panel areas.

1. Instead of using a per-square-foot-of-building approach, break out exterior walls, roof, and floor areas separately from the lumber takeoff.
2. Ensure the lumber yard divides material costs between interior and exterior components to give an accurate comparison.
3. Account for:

• Exterior walls
• Roof panels
• Floor systems (if applicable)
• Insulation removal from the lumber takeoff (since SIPs include continuous insulation)

This method helps you directly compare SIPs vs. stick framing without relying on misleading total square footage estimates.

Step 4: Factor in Inspection & Rework Savings

Stick framing often leads to inspection delays and costly rework due to:

• Crooked studs
• Structural gaps
• Framing inconsistencies that require adjustments before passing inspection

With SIPs, inspections are simpler and faster:

• Instead of checking for stud alignment and insulation gaps, inspectors simply verify top and bottom plate connections and confirm proper fastener installation.
• SIPs arrive factory-straight, reducing the need for corrections, saving time, and keeping the project on schedule.

Builders who have switched to SIPs report fewer inspection delays and a smoother approval process, further improving efficiency and labor cost savings.  Learn more about the top 10 challenges builders tackle with SIPs.

Step 5: Understand the Value – Not Just the Price

SIPs are not the cheapest upfront option, but they are the best value. Instead of comparing only initial costs, consider:

• Superior Strength – SIPs outperform traditional framing in structural integrity, shear strength, and seismic resistance.
• Energy Efficiency – SIPs provide continuous insulation, reducing energy costs by 40-60% over the building’s lifetime.
• Faster Occupancy – SIP projects are typically completed up to 55% faster than traditional builds, meaning quicker project turnover and reduced financing costs.
• Minimal Callbacks – SIP buildings experience fewer structural issues and performance-related callbacks, reducing long-term maintenance costs.

Builders should consider the big picture—SIPs provide higher-quality buildings, reduce total construction time, and offer long-term savings that outweigh the initial price comparison.

>> Beyond Initial Costs: Why Building With SIPs Leads to Long-Term Savings

Getting the Most Accurate SIPs Quote

When pricing SIPs for your construction project, keep these key steps in mind:

• Compare quotes carefully – Ensure every detail is included, from splines to insulation.
• Break out material and labor costs properly – Use square footage of SIP panels, not total building SF.
• Understand labor savings – SIPs install faster, with fewer trades needed.
• Consider long-term value – Energy savings, faster construction, and reduced callbacks make SIPs the best investment for builders.

Want an accurate SIPs quote for your next project? Contact your Premier SIPS Representative today to learn how SIPs can streamline your build and maximize your bottom line.