Best Practices When Dealing with Racking Companies

Posted by Julia on May 26, 2016

As leaders in the material handling industry, we always stress the importance of getting the job done right the first time. We’ve often had companies come to us with problems caused by or related to poor racking installations, where the racking is either uncertified or don’t meet city requirements. For us, it’s frustrating hearing about bad experiences that result in warehouses having to redo an entire project. It is a significant waste of time, money, and resources when companies need to redo an entire project, and may slow down or halt a business’s growth. We want customers to be well-informed about best practices when dealing with racking companies, to help them avoid a potentially expensive mistake.

Racking Companies Must Offer Certified Racks

No matter what company you choose to source your racking systems, it is critical that you make sure the racking is certified. Certified racks are built with strength, safety, and liability in mind, and minimize the potential for accidents, mishaps, and city code violations. Most importantly, only certified racks can be stamped by a State Licensed Structural Engineer and permitted by the city. Reputable racking manufacturers design their products to the Rack Manufacturers Institute (RMI) specification, which is incorporated into ANSI MH16.1, the industry standard for the design, testing, and use of industrial steel storage racks.

Potential Hazards
Racking that isn’t certified is often weak and/or poorly constructed, and can bend and break easily over time due to heavy storage or forklift impacts. If a rack were to fall or collapse, an entire racking system could go down like dominoes. This is a huge hazard to the safety of your employees, as well as your equipment, materials and the warehouse facility itself. OSHA’s warehousing safety guidance specifically calls out racking and storage as a leading source of struck-by and crushing injuries when systems are overloaded or improperly installed.

Understanding Rack Certification and Engineering Stamps

A “certified” rack isn’t just a marketing term — it means the racking layout has been engineered for your specific loads, aisle widths, and building conditions, then reviewed and stamped by a state-licensed structural engineer. That stamped calculation package is what a city building department requires before issuing a permit. Engineers evaluate factors such as seismic design category, beam and upright load capacity, column base plate anchoring, and rack spacing from sprinklers and lighting.

If you’re in a seismically active region, this step is especially important. Racking that isn’t engineered for local seismic requirements can become a serious hazard during an earthquake, since unanchored or under-braced racks are prone to toppling. Always ask whether the proposed design accounts for your local seismic design category before you approve a layout.

Hire a Licensed Contractor

Be sure to hire a licensed contractor for your installations. Licensing laws tend to differ from state to state, so we recommend checking the requirements for your state and verifying your contractor’s license number before committing.

Potential Hazards
Regardless of their experience or expertise, if a contractor is not licensed, their work is illegal! If you hire a company for your racking system installation, and they don’t have a contractor’s license, you risk not meeting city building and fire codes, leading to potential fines. There have been cases where QMH has been hired to dismantle all the racks previously installed by an unlicensed contractor and re-install their racking system to bring it up to code.

Permits

Make sure you obtain permits for your racking system to make sure your project meets city codes. If you’re unsure how to go about this, often times racking companies can help you with the process of applying for and getting permits approved. However, the company must have a contractor’s license to properly obtain the permits.

Potential Hazards
If your city performs an inspection of your warehouse facility and determines that you don’t have proper city permits or meet required fire and safety codes, you make yourself vulnerable to suspension of your business license and could be fined for the violations. Worse yet, in extreme cases of excessive violations, a business can be forced to shut down for good! In California, Cal/OSHA can also cite a facility directly for unsafe storage racking, independent of any local building code violation.

Common Red Flags When Choosing a Racking Company

Before you sign a contract, watch for these warning signs that a racking company may cut corners:

• No contractor’s license number offered upfront. A legitimate company should provide its license number without being asked, and you should be able to verify it independently.
• Reluctance to provide engineering calculations or a PE stamp. If a company can’t produce stamped drawings for your specific layout, the racking likely won’t pass a permit inspection.
• Pressure to skip the permit process. Any company that suggests skipping permits “to save time” is putting your business at legal and safety risk.
• Vague or missing load capacity documentation. Every rack should have a posted load capacity plaque; a company that can’t explain how that number was calculated is a red flag.
• No references or completed local projects. Ask for examples of similar installations they’ve completed and, if possible, contact those customers.

What to Ask a Racking Company Before You Sign

A short list of questions can save you significant time and money later:

• Can you provide your contractor’s license number so I can verify it with the state licensing board?
• Will the racking layout be engineered and stamped by a licensed structural engineer for my specific loads?
• Do you handle the permit application and city inspection process, or is that my responsibility?
• What seismic design category is the racking engineered for, and does that match my building’s requirements?
• What is the rated load capacity per shelf level and per bay, and will that be posted on the rack?

QMH: Your Provider of Material Handling Solutions

Not all racking companies are created equal, and it’s important to make sure they fit the bill when it comes to successfully completing your warehouse project. Quality Material Handling offers a full range of warehouse solutions, and we’re ready to partner with you to develop the perfect warehouse management solutions for your business. We strongly believe that the more you know, the better you’ll be equipped to make the best decisions. We love to help our customers grow, it’s our pride and joy! We are licensed contractors, and offer complete racking installations, as well as permit services for your warehouse racking project. With over 25 years of experience, our team of professionals is here to make sure the job is done right the first time!

Helpful Tools:

Look Up a License
We highly recommend you ask for the contractor’s license of the company installing your racks. You can then use this tool to check a contractor’s license and their standing.

Report Illegal Activity
If you know of someone operating their business without a contractor’s license, you can report their unlicensed activity here.

Quality Material Handling’s Contractor’s License: #731100 (B, D34, C16)

Frequently Asked Questions

Why does racking need to be certified?

Certified racking is engineered to a known, tested load capacity and design standard (ANSI MH16.1), which is what allows a structural engineer to stamp the layout and a city to issue a permit. Uncertified racking has no verified capacity, which makes it a collapse risk under normal warehouse loads.

How do I verify a racking company’s contractor’s license?

You can look up any California contractor’s license number using the CSLB license lookup tool, which shows license status, classifications, bonding, and any disciplinary history.

What happens if I install racking without a permit?

If your city later inspects the facility and finds unpermitted racking, you risk fines, forced retrofits or removal, and potential suspension of your business license until the system is brought up to code.

Do racking installations need to account for earthquakes?

In seismically active regions, yes. Racking layouts should be engineered for your local seismic design category, with proper anchoring and bracing, since unanchored racks are a common cause of collapse during seismic events.

What’s the difference between a racking supplier and a licensed racking contractor?

A supplier may sell you rack components, but a licensed contractor is legally authorized to design, install, and pull permits for the system. Using an unlicensed installer can leave you with racking that can’t be permitted or insured.

How much does it cost to fix an unpermitted or uncertified racking installation?

Costs vary widely by facility size, but retrofitting or fully re-installing a racking system after a failed inspection typically costs significantly more than doing it correctly the first time, since it includes demolition, new engineering, and re-installation labor.

Questions? Call 800-404-RACK (7225)

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