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Pushover analysis technique is a key tool for the performance-based seismic design that has been largely adopted in the new generation of seismic codes. Therefore, more precise and reliable performance predictions are highly demanded. Improved upper-bound (IUB) pushover analysis is one of the advanced nonlinear static procedures (NSPs) that has been recently developed. This procedure estimates adequately the response of regular and tall buildings. In this study, IUB is extended to assess the seismic response of irregular buildings with setbacks. To this end, an adjustment of the IUB lateral load distribution is implemented by integrating a third mode of vibration to control the response of these complex buildings. Fifteen multi-storey steel frames with different types of setbacks including a reference structure are used to test the accuracy of the proposed procedure by comparing its results to those from other NSPs and the nonlinear time history analysis (NLHA). The findings show the superior capacity of the extended IUB in predicting the seismic response of buildings with different levels and types of setbacks.