Three Tools for Three Different Change Situations
Changes to the construction scope are inevitable on virtually every project. How those changes are processed - and what happens to cost and schedule - depends on which contractual mechanism is used. The ARE tests all three mechanisms: the Change Order (CO), the Construction Change Directive (CCD), and the Architect's Supplemental Instruction (ASI). Understanding when each applies and what authority it carries is tested on both the PjM and CE divisions.
Change Order (CO)
A Change Order is a written amendment to the construction contract that modifies the contract sum, contract time, or both - by mutual agreement of all parties. The owner, contractor, and architect all sign a Change Order. This bilateral agreement is the preferred mechanism because it resolves all disputed items - cost, time, and scope - before the work proceeds.
The process: the owner or architect identifies a change in scope; the contractor provides a proposal (cost and time impact); the architect reviews it for reasonableness; and all parties negotiate and agree before the CO is executed. AIA G701 is the standard Change Order form.
Construction Change Directive (CCD)
A Construction Change Directive (CCD) is used when the owner wants the contractor to proceed with a change but the parties cannot agree on cost or time impact. Unlike a Change Order, a CCD is a unilateral directive signed by the owner and architect - the contractor does not sign. The contractor is required to proceed with the work immediately; the cost and time adjustment are determined later (through one of three methods outlined in A201 Article 7).
The three cost resolution methods under a CCD: (1) mutual agreement on a lump sum, (2) unit prices established in the contract, or (3) cost plus a reasonable fee based on actual time and materials. A CCD converts to a Change Order once the parties agree on cost and time. Using a CCD avoids project delays when there is a dispute over price - the work proceeds while cost is negotiated.
Architect's Supplemental Instruction (ASI)
An ASI is used for minor clarifications and changes to the contract documents that do not affect contract sum or contract time. The architect issues an ASI unilaterally (without owner or contractor signature) - it is an exercise of the architect's interpretive authority under A201 Article 4. Examples of appropriate ASI use: clarifying a dimension that is unclear on the drawings, specifying a color not previously determined, detailing a construction condition that was not fully addressed in the CDs.
Critically, an ASI must not create a cost or time impact. If an ASI would change the contract sum or time, a Change Order or CCD is the appropriate mechanism. AIA G710 is the standard ASI form.
Comparison of the Three Mechanisms
| Factor | Change Order | CCD | ASI |
|---|---|---|---|
| Signed by | Owner, Contractor, Architect | Owner and Architect only | Architect only |
| Affects cost? | Yes (agreed) | Yes (to be determined) | No |
| Affects time? | Yes (agreed) | Yes (to be determined) | No |
| Contractor must proceed? | After signing | Immediately | Immediately |
| AIA form | G701 | G714 | G710 |
Key Exam Points
- Change Order = bilateral agreement; all parties sign; resolves cost and time.
- CCD = unilateral; owner-architect signed; contractor proceeds; cost determined later.
- ASI = architect only; no cost or time impact; minor clarifications only.
- If an ASI has cost/time impact, it must be converted to a CO or CCD.
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