What is a change order in steel fabrication?

A change order is a formal document used to record any agreed changes to the original scope, design, cost, or timeline of a fabrication project. It ensures that modifications—like material upgrades or design tweaks—are documented, approved, and billed accordingly.

Why are change orders important for small fabrication shops?

Change orders are essential for small fab shops to avoid scope creep and protect margins. Without proper documentation, extra work often goes unpaid or untracked, impacting profitability and production planning.

What are the common triggers for a change order in metal fabrication projects?

Change orders are commonly triggered by client requests (e.g. adding a staircase), engineering revisions after fabrication begins, site condition changes, or updated compliance requirements. Each change may affect materials, labor, schedule, or all three.

How should a small fab shop handle change orders internally?

Once a change order is approved, update the BOM, issue new work orders, and adjust the schedule immediately. A digital system like EZIIL helps streamline this process, reducing errors and ensuring all teams are working from the latest instructions.

Can change orders affect the profitability of a fabrication project?

Absolutely. Change orders introduce scope and cost changes. If they’re not captured and priced properly, they can eat into margins or cause delays. A well-managed change order process helps ensure that every adjustment is accounted for and paid.

What are the risks of not managing change orders properly?

Poor change order management can lead to unpaid work, rework due to outdated drawings, missed deadlines, misaligned teams, and lost profit. It also opens you up to disputes with clients if there’s no clear approval record.

How can digital tools help manage change orders in fabrication?

Digital tools like EZIIL allow you to log, track, and implement change orders instantly—updating tasks, BOMs, and schedules in one place. This keeps everyone aligned, ensures traceability, and prevents missed details or delays.

Change Order

What is Change Order?

A Change Order is a formal document that records an agreed modification to the original scope, design, schedule, or cost of a project.

In steel fabrication projects, change orders are common. For instance, the client might request an additional staircase, or engineering may revise a connection detail after fabrication started.

The change order specifies what is changing (for example, “Replace base plate thickness from 10mm to 12mm”), any impact on cost (perhaps extra material or labor) and schedule (added days or weeks), and is typically signed by both parties (the fabricator and the customer or general contractor).

For a small fab shop, managing change orders is important to avoid scope creep and to ensure you get paid for extra work.

It triggers internal actions too: when a change order is approved, the BOM or production routing might be updated, new work orders issued, and scheduling adjusted.

A well-handled change order process can mean the difference between profit and loss on a project, as it provides the mechanism to capture additional costs for out-of-scope work and document client approvals.