Construction projects rarely go exactly as planned. Scope evolves, unforeseen conditions arise, and owners request changes long after construction begins. When that happens, the project team needs a clear process for documenting those changes and keeping the work moving.
Two of the most common tools are a change order and a construction change directive (CCD). Knowing which document to use and when can reduce disputes that might otherwise knock your project off track.
Quick Decision Guide: Change Order or Construction Change Directive?
The right form depends on whether the team has already agreed on cost and time, or whether work needs to begin before those terms are finalized.
If Your Project… | Use This Document |
Has a change everyone has agreed to, including cost and time impacts | |
Needs changed work to proceed before cost or schedule impacts are finalized |
What Is a Construction Change Directive?
A construction change directive (CCD) is a written order from the owner that is prepared by the architect directing the contractor to proceed with changed work before the parties have agreed on the cost or schedule impact.
G714 is the form used to document the directive.
Under A201® – General Conditions of the Contract for Construction, the owner can issue a construction change directive without the contractor’s signature. Although the contractor has not yet agreed to the adjustment in contract sum or contract time, they are generally required to proceed with the directed work under the terms of the contract. Failure to do so can be treated as a breach of contract or become the basis of a dispute.
This allows critical work to continue while the parties negotiate the financial and scheduling impacts, helping prevent unnecessary project delays.
When To Issue a Construction Change Directive
A construction change directive is appropriate when the work cannot wait, but negotiations over cost or schedule are still underway.
For example: an unforeseen site condition is discovered during excavation. Waiting for all parties to negotiate and sign a change order could delay the project schedule and increase costs. Instead, the owner issues a construction change directive directing the contractor to proceed immediately while the contract sum and contract time are determined later.
Other situations where a CCD may be appropriate include:
- Emergency work affecting safety or project continuity
- Regulatory or code compliance changes
- Owner-directed changes requiring immediate action
The key distinction is urgency. A construction change directive keeps the project moving when waiting for a negotiated change order is not practical.
A construction change directive can feel one-sided to a contractor, since the owner can direct the work to proceed before cost or time is settled. But construction change directives still protect the contractor’s right to payment. Even though the contractor has to move forward with the directed work, they’re still entitled to a fair adjustment to the contract sum, and the contract time where applicable.
If the parties can’t agree on the adjustment in advance, A201 lays out how the amount gets determined: through the pricing methods in the owner-contractor contract, or, if needed, by the architect based on the contractor’s documented costs.
Who Signs a Construction Change Directive?
Initially, only the owner and architect sign a construction change directive.
The contractor’s agreement is not required for the directive to take effect. However, the contractor may sign the document if they agree with the proposed cost and time adjustment.
Once all parties reach agreement, they typically execute a change order to formally incorporate those adjustments into the contract.
Until then, the contractor may continue documenting the directed work and include eligible costs in applications for payment while the final cost gets worked out.
What Is a Change Order?
A change order is a written modification to the contract, signed by the owner, architect, and contractor, that adjusts the contract sum, the contract time, or both. Unlike a construction change directive, a change order requires agreement from all parties before it takes effect.
G701 is the form used to document these agreed-upon changes.
Because everyone has agreed to the revised scope, cost, and schedule, change orders generally carry less dispute risk than construction change directives. They create a clear, signed record of the modification before additional work begins.
Types of Change Orders
Not every change order increases the project cost. Depending on the circumstances, a change order may increase, decrease, or simply clarify the work.
Additive Change Order
An additive change order increases the contract sum because additional work or expanded project scope has been approved.
Deductive Change Order
A deductive change order reduces the contract sum when work is removed from the original scope or when value engineering results in lower project costs.
Zero-Cost Change Order
A zero-cost change order modifies the scope, schedule, or project responsibilities without changing the contract sum.
Understanding these different types of change orders helps ensure the contract accurately reflects how the project evolves over time.
What Triggers a Change Order Request
A change order usually begins with another project document or communication rather than the change order itself.
Common triggers include:
- An owner-requested design revision
- An architect’s supplemental instruction (ASI)
- A proposal request (PR)
- A request for information (RFI)
- Unforeseen site conditions
- Regulatory or code changes
For example, an owner might request a design change. The architect issues a proposal request describing the revised scope, and the contractor evaluates the impact on cost and schedule. If everyone agrees with the proposed adjustment, the parties execute a change order, and the adjustment becomes part of the contract record.
This structured process creates a clear project record and helps ensure changes are documented before they become disputes.
Change Order vs. Construction Change Directive: Key Differences
Both documents modify the work, but they are used at different points in the decision-making process. The core distinction comes down to agreement.
A change order documents a change that all parties have agreed to, including its impact on the contract sum and contract time. A construction change directive allows the owner to direct change work before those details have been finalized.
Understanding this distinction helps project teams choose the right document and maintain a complete contract record.
How the Change Order Process Works
Most construction change orders follow these five steps.
- Identify the Need for a Change: A change may result from an owner request, design clarification, differing site condition, regulatory requirement, or another project issue.
- Document the Proposed Change: The project team issues a proposal request, request for information (RFI), architect’s supplemental instruction (ASI), or another project communication describing the proposed work.
- Evaluate Cost and Schedule Impacts: The contractor reviews the requested change and prepares pricing, schedule adjustments, and any supporting documentation.
- Review and Approve: The architect reviews the proposal against the contract documents and recommends whether the owner should approve the change.
- Execute Change Order: Once the owner, architect, and contractor agree on the adjustment, they execute the change order, formally modifying the contract.
Following the same documented process for every project change creates a consistent project record and minimizes confusion later.
The Architect’s Role in the Change Management Process
The architect plays a central role in evaluating proposed changes before they become part of the contract.
For architects, maintaining complete documentation throughout the process also helps preserve a clear project record if questions arise later.
Rather than simply forwarding contractor pricing, the architect typically reviews the proposed work and evaluates whether the requested adjustment is appropriate before preparing the change order for the owner’s signature. Well-documented proposals make this review more efficient and help avoid unnecessary back-and-forth between the project team.
Avoiding Informal Changes
Discussions about changes to the contractor’s scope of work sometimes happen informally, through verbal instructions, emails, or field conversations, rather than through a change order or construction change directive. This pattern is sometimes referred to as a constructive change. Without proper documentation, disagreements can arise over whether the work was authorized, how much it should cost, or whether additional contract time is justified.
Informal direction often shows up as:
- Verbal instructions given during jobsite meetings
- Informal owner requests that expand the project scope
- Design clarifications that require additional work
- Repeated changes to work sequencing that reduce productivity
- Inspection requirements that exceed the original contract
- Delayed decisions that force contractors to perform work differently than originally planned
Although these situations may seem routine, they can significantly affect project cost and schedule if they are not documented properly.
How Proper Documentation Reduces Disputes
Disputes tend to follow the same pattern.
The work changes, nobody documents it properly, and the parties disagree later about what was requested, who approved it, or whether additional compensation or time is justified.
Using the appropriate document at the appropriate time helps prevent those disagreements.
- Use G701 (Change Order) when everyone agrees on the change.
- Use G714 (Construction Change Directive) when work must proceed before cost or schedule impacts have been finalized.
- Avoid relying on verbal instructions or informal emails when contract changes are involved.
A disciplined documentation process creates a cleaner project record, supports payment applications, and reduces the likelihood of costly disputes during closeout.
Build a Contract That Can Handle Change
Change is part of nearly every construction project. Having the right documents available before changes occur helps teams respond quickly while maintaining a complete contract record.
With an AIA Contract Documents subscription, you’ll have access to the full document library, including A201, G701, G714, and 300+ other agreements and forms that support every stage of the construction process.
Frequently Asked Questions
A change order is a mutually agreed modification to the contract signed by the owner, architect, and contractor. A construction change directive allows the owner to direct changed work before cost or schedule impacts have been finalized.
No. Under A201, the owner can issue a construction change directive without the contractor’s signature. The contractor is generally required to proceed with the work as directed under the contract while cost and schedule impacts are determined.
Use G714 when work must proceed immediately and the parties have not yet agreed on cost or time adjustments.
Use G701 when all parties have reached agreement and are ready to formally modify the contract.
Can a Construction Change Directive Become a Change Order?
Yes. Once the owner, architect, and contractor agree on the cost and time impacts of the directed work, they typically execute a G701 to formally incorporate those adjustments into the contract.
A constructive change occurs when work outside the original contract scope is directed informally rather than through a documented change order or construction change directive.
Because there is no formal documentation, constructive changes often become payment or schedule disputes.
A deductive change order reduces the contract sum because work has been removed from the project scope or because a less expensive solution has been approved.
Yes. A change order may adjust the contract sum, the contract time, or both, depending on the impact of the approved change.
