What Is a Construction Change Directive (CCD)?

A construction change directive (CCD) is a written order, prepared by the architect and signed by the owner and the architect, that directs a change in the work before the owner and contractor have agreed on how it affects the contract sum or the contract time. AIA's standard form for it is G714.

A CCD exists for one situation: the work has to change now, and the price can't wait to be settled first. This guide covers when to use one, who signs it, how the cost gets settled, and how to keep CCDs from staying open until closeout.

When to use a CCD

Use a CCD when waiting for an agreed price would cost more than the change itself:

• The schedule can't absorb a proposal cycle. An inspection is booked, a slab pour is next week, or a trade is about to cover up the work.
• The cost can't be known yet. Concealed conditions behind a wall or below grade, where the extent only shows once the work starts.
• The owner and contractor disagree on the price, but both agree the work has to happen.
• Safety or code compliance requires an immediate change.

In each case the CCD lets the contractor proceed while the money is worked out afterwards.

When not to use one

• When there is time to price it. If the change can wait for a proposal request and the contractor's proposal, use that. A priced change is easier to approve and harder to dispute.
• When the change costs nothing. A minor, no-cost change is an ASI.
• As a negotiating shortcut. Issuing CCDs to avoid a difficult price conversation only moves the conversation to the end of the job, when it is harder.

Who signs a CCD

Under the 2017 edition of AIA A201, the General Conditions, a CCD is prepared by the architect and becomes effective when the owner and the architect sign it. The contractor's signature is not needed for the CCD to take effect.

Once the contractor receives it, the contractor must promptly proceed with the change and tell the architect whether it agrees or disagrees with the proposed adjustment, if the CCD proposes one.

The contractor's signature means something specific: if the contractor signs the CCD, it agrees with the adjustment in cost and time. Under A201-2017, that agreement takes effect immediately and is recorded as a change order.

How the cost and time get settled

A201-2017 Section 7.3 lists the ways the adjustment to the contract sum can be determined:

• a lump sum the parties accept, properly itemized and supported,
• unit prices stated in the contract documents or agreed later,
• cost plus a fixed or percentage fee, agreed in advance, or
• if none of those is agreed, the architect determines the adjustment from the contractor's reasonable costs for the change, with a reasonable allowance for overhead and profit.

For that last method, the contractor keeps an itemized accounting of the costs, with supporting data. While the final amount is still open, the contractor can include work done under the CCD in its applications for payment, and the architect makes an interim determination for monthly certification.

Changes in contract time are handled the same way: agreed, or determined if they can't be agreed. Your own contract may modify any of this, so check it before you issue the first CCD on a project.

What goes in a CCD

• The project header: project name and number, the contract, the owner, the contractor, and the architect.
• The CCD number and date.
• The change: what the contractor is directed to do, with locations and the drawings, sketches or specifications attached.
• The proposed basis of adjustment: lump sum, unit prices, or cost plus a fee, if one is proposed.
• The proposed adjustment to the contract sum and the contract time, if known.
• Signatures: the owner and the architect, plus a place for the contractor to sign if it agrees.

CCD vs change order

A CCD is a temporary instrument. Every CCD should end in a change order, either one that records the contractor's agreement or one that records the final determined amount. For the full chain of change documents, see ASI vs. proposal request vs. CCD vs. change order.

Tracking CCDs until they close

The risk with CCDs is not issuing them. It is forgetting them. A CCD signed in month four and never settled turns into a dispute at closeout, when nobody remembers the conditions.

A CCD log should show, for every CCD:

• CCD number and date
• Description
• Date signed by the owner and by the architect
• Date the contractor signed, or that it disagreed
• Proposed amount and time, and the basis of adjustment
• The change order that settled it

Review the open CCDs at every OAC meeting. Any CCD without a settling change order is an open amount on the contract.

Keep the two totals apart, too. A change order shows the net change from earlier change orders. Open CCDs are not part of that line until a change order settles them, so they should be reported to the owner as pending, not as authorized.

Common mistakes

• Treating a CCD as final. It directs the work. The money is settled later in a change order.
• Missing the owner's signature. A CCD isn't effective until both the owner and the architect have signed.
• No basis of adjustment. A CCD with no proposed method guarantees a negotiation later. State lump sum, unit prices or cost plus a fee whenever you can.
• Not tracking the contractor's costs. For cost-plus or architect-determined CCDs, the itemized accounting has to start on day one.
• Leaving CCDs open. Every CCD should be resolved into a change order before final payment.

Frequently asked questions

Does the contractor have to proceed with a CCD it disagrees with?

Under A201-2017, yes. Once the owner and architect sign, the contractor must promptly proceed with the change, while telling the architect it disagrees with the proposed adjustment. The disagreement is about money and time, not about doing the work.

Is a CCD the same as a change order?

No. A change order is the agreement that changes the contract sum or time, signed by the owner, architect and contractor. A CCD directs the work before that agreement exists, and is later settled by a change order.

What does CCD stand for in construction?

Construction change directive. Some contracts call a similar instrument a "change directive" or "work change directive". The idea is the same: proceed now, settle the price later.

Can several CCDs be settled in one change order?

Yes. A single change order can settle several CCDs, proposal requests and contractor requests at once, as long as each one is listed on it.

Keeping CCDs from slipping

In Agradium, every CCD records the owner's, architect's and contractor's signature dates, and stays open in the change process until a change order settles it. Several CCDs can roll into one change order, and the contract sum carries forward from one change order to the next. If you would like to see how that works on a project, request a demo.

AIA document numbers and A201 sections are cited to identify them. This is general information, not legal advice; your contract governs. Agradium is not affiliated with or endorsed by the American Institute of Architects.