Steel construction change orders: causes and strategies

Abstract

Construction projects are characterised by high uncertainty, making changes and adjustments a recurring feature of project execution. These deviations are commonly formalised through change orders, which alter contracts through additions, omissions, or modifications to the agreed work. Although change orders are often necessary, they can negatively affect project performance through rework, delays, increased administration, cost increases, and strained relationships. This study investigates the main causes and effects of change orders in the steel construction industry and explores strategies for reducing their occurrence and mitigating their negative effects. The study is conducted as a qualitative single-case study at a Swedish steel construction company. Empirical data collection is carried out in three phases through unstructured interviews, observations, a workshop, semi-structured interviews, and a group interview. A literature review was performed to identify causes and effects of change orders in previous research, which were then combined with empirical findings to develop a taxonomy tailored to the steel construction context. The taxonomy is structured into three levels, consisting of two categories, 10 themes, and 27 factors. To support managerial prioritisation, the causes are assessed in a risk matrix based on the severity of impact and probability of occurrence. This resulted in six high-risk factors critical to address: communication, coordination, inexperienced project manager, client generated changes, documentation, and controversial change orders. The first three of these factors are identified as preventable and the other three as non-preventable. Strategies are then presented for managing them accordingly. The study contributes by providing an operationally focused taxonomy of change order causes and effects tailored to steel construction, as well as practical strategies for supporting more structured change order management.