Construction Change Directives (CCDs): Disputed Changes, Interim Direction, Cost Determination Methods, and A201 Procedures

Covers construction change directives as the mechanism for directing disputed changes during construction. Addresses CCD issuance authority (owner and architect), the contractor's obligation to proceed, cost determination methods under A201 Section 7.3, interim pricing, and the path from CCD to change order resolution.

ARE · Construction & Evaluation

Overview

A construction change directive (CCD) is a written order prepared by the architect and signed by the owner and architect, directing a change in the work before the owner and contractor agree on the adjustment to the contract sum or contract time. Under A201-2017 Section 7.3, a CCD is used when the owner and architect want work to proceed but the contractor disputes the cost, time, or both.

The CCD fills a critical gap between change orders and minor changes. A change order requires all three parties to agree. A minor change (ASI) cannot affect cost or time. But what happens when a change clearly affects cost or time and the parties cannot agree on the numbers? The CCD allows the owner to direct the contractor to proceed with the work while the cost and time disputes are resolved.

The contractor is obligated to promptly perform the work described in a CCD. This obligation exists even if the contractor disagrees with the cost or time specified. The contractor's remedy is to pursue the cost and time dispute through the contract's claims procedures, not to refuse to perform the work.

CCDs require only two signatures: the owner and the architect. The contractor's signature is not required precisely because CCDs address situations where the contractor disagrees. Once the cost and time are eventually agreed upon, the CCD is converted to a change order with all three signatures. Until then, the CCD authorizes the work and the cost is determined through the methods specified in A201 Section 7.3.4.

A CCD can direct changes in scope, method, or sequence of work. It can increase or decrease the contract sum. The key feature is that it provides interim authorization to proceed while preserving each party's right to dispute the financial terms.

Essential

Understanding how CCDs work requires knowing when to use them, what they contain, how the contractor must respond, and how the cost is ultimately determined. When to Use a CCD CCDs are appropriate in several situations. The most common is when the owner wants work to proceed but the contractor disputes the cost. For example, the owner wants an additional fire-rated stairwell, the contractor prices it at $180,000, and the owner believes the price should be $140,000. Rather than delay the stairwell construction while the price is negotiated, the owner and architect issue a CCD directing the work to proceed. CCDs are also used when the contractor fails to respond to a proposal request within the specified timeframe. If the contractor does not provide pricing, the owner cannot execute a change order (which requires the contractor's agreement on price).

Professional

CCDs are the most legally sensitive change instrument because they direct the contractor to perform work without agreed-upon compensation. The architect must manage CCD use carefully to protect all parties and minimize professional liability exposure. Strategic Use of CCDs Architects should use CCDs judiciously, not routinely. Every CCD represents an unresolved financial obligation. While CCDs are necessary in certain situations, overuse can create adversarial relationships and a backlog of disputes that complicates project closeout. The preferred approach is to negotiate change orders whenever possible and reserve CCDs for situations where delay would cause genuine harm to the project. Before recommending a CCD, the architect should assess whether the urgency is real. If the change can wait two weeks for the contractor to provide pricing and the parties to negotiate, a change order is preferable.

TLDR

A CCD (construction change directive) directs the contractor to proceed with changed work when cost or time is disputed. It requires only owner and architect signatures, not the contractor's. The contractor must perform the work; refusal is a breach. Cost is determined by Section 7.3.4: lump sum agreement, unit prices, cost of work plus markup, or architect determination. CCDs are interim instruments and should be converted to change orders once the disputed amounts are resolved. The architect should establish cost documentation protocols when issuing CCDs and track all open CCDs in the change order log. Use CCDs judiciously, not routinely. Prefer change orders when negotiation time is available.

ELI5

Imagine you are renovating your house. The contractor discovers a water-damaged beam that needs to be replaced. The architect says it will cost about $15,000 and adds three days. The contractor says no, it will cost $22,000 and add five days. You need the beam fixed now because the rest of the work cannot continue until it is done. A CCD is like saying to the contractor: "We disagree on the price, but fix the beam now and we will sort out the money later." You (the owner) and the architect both sign the CCD. The contractor does not have to sign because the whole point is that the contractor disagrees on the cost. The contractor has to do the work. That is the deal. The contractor cannot say "I am not fixing the beam until you agree to pay $22,000.

Overview

Essential

Professional

TLDR

ELI5

AREConstruction & Evaluation

Construction Change Directives (CCDs): Disputed Changes, Interim Direction, Cost Determination Methods, and A201 Procedures

2 min read296 words

CCDs: Directing Work When the Parties Disagree

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