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Metal Buildings: Production Versus Approval Order

Pre-engineered Metal Building (PEMB) lead time has become a topic of conversation again. We have recently seen a slight increase in lead times, but nothing as severe as we saw coming out of COVID. Lead times will stabilize. The recent surge in orders came from people wanting to dodge the new tariffs.

Metal building contractors cannot change market conditions that lead to longer lead times. But contractors can have a tremendous impact on the lead time for a specific building based on how they order the building.

Approval Order

An approval order is a method for ordering a PEMB that requires the PEMB manufacturer to create “approval drawings.” The architect receives these drawings for review before fabrication. The architect can either approve the drawings, approve them with changes, or ask for revisions and resubmission. The building won’t be detailed, fabricated, or delivered until the drawings are approved. If the architect requests a revision and resubmission, it can significantly impact the delivery date.

Public projects needing shop drawings or approval drawings as specified use approval orders. They’re also used for complex projects or when some details are still unknown.

Production Order or Fabrication Order

A production order, also known as a fabrication order, begins the building process immediately. It places the building in the fabrication cycle. As soon as the order is received and clarified, it enters design, detailing and ultimately production. As a result, the building lead time for a production order is much shorter than that of an approval order. But, there is very little opportunity to make changes to the building when the order is submitted. You can make changes, but it will affect the delivery date and cost.

Ordering a building as a production order may seem risky. The owner and architect can’t review the drawings before fabrication. All building manufacturers have software that helps them make preliminary drawings. The owner can confirm the building’s size, where the frames are, the sizes of openings, and the types of panels by using the drawings from the system. Cranes and mezzanines are complex items. But, you can clarify them when you place your order, so approval drawings aren’t needed.

We try to order most of our buildings as production orders. Before finalizing the building order, we meet with the client and architect. We review the preliminary drawings to clarify the order. This approach assists us in correctly ordering the building. It also gives us the best delivery schedule.

We’ve learned that for complex projects, or when some features are unclear, it’s best to place an approval order for the building. This allows more flexibility and time to make decisions related to the design. It sacrifices the delivery schedule, but if someone places the building as a production order and requires changes, the delivery could be further out than the building was initially ordered as an approval order.

Contractors need to know the project and the customer well. This knowledge enables them to determine whether to use a production order or an approval order, depending on the information available.