Change Orders, Field Orders and Change Directives

Why This Topic Matters for the CCM Exam
Change management sits at the heart of the Contract Administration domain of the CMAA Certified Construction Manager (CCM) exam. Almost every construction project experiences change, and the way changes are identified, documented, priced, authorized and closed out directly affects cost, schedule, quality and the legal exposure of every party. The CMAA Standards of Practice treat change management as a core Construction Manager (CM) responsibility, and the exam tests whether you understand which instrument is used in which situation, who has authority to issue it, and what the CM is expected to do at each step. Candidates who confuse a Change Order with a Construction Change Directive, or who assume the CM can unilaterally commit the Owner to extra cost, routinely lose points. Mastering this topic also reinforces related exam areas such as claims avoidance, schedule impact analysis, contingency management, and documentation.

What a Change Is
A change is any modification to the scope of work, contract price, or contract time established in the executed contract documents. Changes arise from many sources:
• Owner-requested scope additions, deletions or program revisions
• Design errors, omissions, ambiguities or conflicts in the drawings and specifications
• Differing or unforeseen site conditions (Type I and Type II conditions)
• Regulatory or code-authority requirements discovered after award
• Value engineering proposals accepted by the Owner
• Contractor-requested substitutions or means-and-methods adjustments
• Force majeure or other excusable events affecting time
Regardless of the source, the fundamental rule is that changes must be documented in writing. Verbal directions create disputes, constructive change claims and audit problems. The three principal written instruments used to manage change are the Change Order, the Field Order (or minor change instruction) and the Change Directive. Understanding the differences among them is the key to this topic.

1. Change Order (CO)
Definition: A Change Order is a formal, bilateral written agreement, signed by the Owner and the Contractor (and typically recommended or certified by the design professional and the CM), that modifies the contract by adjusting the Contract Sum, the Contract Time, or both, and may also revise the scope of work.
Key characteristics:
• It is a formal amendment to the contract.
• It requires mutual agreement on scope, price and time before execution.
• Once fully executed, it is binding and generally constitutes a full and final settlement of the direct and impact costs for that change, unless rights are expressly reserved.
• Under AIA A201, the Change Order is signed by Owner, Contractor and Architect. Under EJCDC C-700, it is signed by Owner and Contractor and recommended by the Engineer. Under ConsensusDocs it is likewise a mutual agreement between Owner and Constructor.
• Change Orders are numbered sequentially and tracked cumulatively in a change order log that shows the original contract value, each adjustment, and the current contract value and completion date.
Typical CO process (CMAA Standards of Practice):
1. Identify the potential change (through an RFI, field observation, Owner request, design revision, or Contractor notice).
2. Log it as a Potential Change Order (PCO) or Change Request.
3. Define the scope precisely, including drawings or narrative.
4. The CM prepares an independent cost and time estimate before receiving or reviewing the Contractor proposal.
5. Contractor submits a detailed proposal (labor, material, equipment, subcontractor costs, allowable markups, and any time extension request supported by schedule analysis).
6. The CM evaluates, compares against the independent estimate, verifies entitlement, checks allowable markups and bond or insurance costs, and negotiates with the Contractor.
7. The CM makes a recommendation to the Owner; the Owner decides whether to approve.
8. The Change Order is prepared, executed by the required parties, distributed, and incorporated into the contract documents, schedule of values, baseline schedule and project budget.
9. The change log and contingency tracking are updated.

2. Field Order (Minor Change in the Work)
Definition: A Field Order is a written order issued by the design professional (Engineer under EJCDC) or, where authorized, the CM, directing minor changes or clarifications in the Work that are consistent with the intent of the contract documents and that do not involve a change in Contract Price or Contract Time.
Key characteristics:
• Used for minor adjustments, clarifications, and interpretations (for example, relocating an outlet a few inches, resolving a dimensional discrepancy, selecting an alternate equal finish).
• Does not change cost or time. If the Contractor believes the Field Order does affect cost or time, the Contractor must give timely written notice before proceeding and request that the change be processed as a Change Order or Change Directive; otherwise the right to additional compensation may be waived.
• Under AIA A201 the equivalent is the Minor Change in the Work, often transmitted via an Architect Supplemental Instruction (ASI). Under EJCDC it is called a Field Order. Under ConsensusDocs similar minor directions are handled by written instruction.
• Binding on Owner and Contractor as an interpretation of the existing contract, not as an amendment to price or time.
• Field Orders should still be logged and tracked because an accumulation of minor changes can create cumulative impact and claims.

3. Change Directive (Construction Change Directive or Work Change Directive)
Definition: A Change Directive is a written unilateral order from the Owner (prepared by the design professional and often recommended by the CM) directing the Contractor to proceed with a change in the Work before the parties have reached agreement on the adjustment to Contract Sum and/or Contract Time, or when agreement cannot be reached at all.
Key characteristics:
• Called a Construction Change Directive (CCD) under AIA A201, a Work Change Directive (WCD) under EJCDC C-700, and an Interim Directed Change under ConsensusDocs.
• Signed by the Owner (and Architect under AIA); the Contractor signature is not required for it to be effective.
• The Contractor is obligated to proceed promptly with the directed work and to track costs. Refusal to proceed may be a breach of contract.
• Used when the work is urgent, when it is on the critical path and waiting would cause delay, or when the Owner and Contractor cannot agree on price or time.
• Pricing is determined by one of the methods in the contract: mutual acceptance of a lump sum, unit prices, cost plus a fixed or percentage fee, or, if no agreement, by the design professional based on reasonable documented expenditures and savings plus a reasonable allowance for overhead and profit (force account or time-and-materials tracking with daily signed records).
• A Change Directive is an interim instrument; once the adjustment is agreed or determined, it is converted into a Change Order. Any portion not disputed is typically paid on the next progress payment.
• The Contractor retains the right to dispute the final determination through the claims process.

Comparison at a Glance
Change Order: bilateral, signed by Owner and Contractor, adjusts price and/or time, final and binding amendment.
Field Order: issued by design professional or authorized CM, minor change consistent with contract intent, no change to price or time, Contractor must give notice if it believes otherwise.
Change Directive: unilateral, issued by Owner, directs Contractor to proceed before agreement on price or time, later converted to a Change Order.

The CM Role in Change Management (CMAA Standards of Practice)
• Establish a written change management procedure in the Project Procedures Manual or CM Plan, defining forms, routing, authority levels, time limits and logs.
• Maintain a Potential Change Order log, Change Order log, Field Order log and Change Directive log with status, cost and schedule impact.
• Prepare independent estimates and perform time impact analyses (fragnets inserted into the current schedule) to evaluate Contractor time requests.
• Evaluate entitlement (is the Contractor actually owed anything under the contract?) separately from quantum (how much?).
• Verify markups, limits on overhead and profit for multiple subcontractor tiers, bond and insurance adjustments, and credit for deleted work.
• Negotiate on behalf of the Owner and make recommendations; the CM generally does not have authority to approve changes or commit Owner funds unless that authority is expressly delegated in the CM agreement, usually within a dollar threshold.
• Protect the Owner from constructive changes by ensuring no field personnel give verbal directions that alter scope.
• Manage the Owner contingency and report cumulative change exposure, trends and root causes (for example, a high percentage of design-related changes signals a document quality problem).
• Ensure changes are reflected in the schedule of values, baseline schedule update, as-built documents and record drawings.
• Close out: confirm all Change Directives are converted to Change Orders before final payment and that releases or reservations of rights are clear.

Related Concepts Frequently Tested Together
• Constructive change: an action or inaction by the Owner or its representative that effectively changes the work without a formal written change; the Contractor may be entitled to compensation. Good CM procedures prevent this.
• Cardinal change: a change so far outside the original scope that it is beyond the authority of the changes clause; the Contractor may refuse to perform or treat it as breach.
• Notice requirements: most contracts require the Contractor to give written notice of a claimed change within a stated number of days (often 21 under AIA) or risk waiver.
• Differing site conditions: usually handled through the Change Order process after notice and investigation; the Contractor must not disturb the condition before the Owner and CM observe it.
• Allowances and unit prices: adjustments to allowances or quantities are made by Change Order, not Field Order.
• Reservation of rights: if the Contractor signs a Change Order while reserving the right to claim impact or delay costs, the CM should flag this to the Owner.

How It Works in Practice: A Worked Scenario
During excavation, the Contractor encounters an abandoned concrete foundation not shown on the drawings. The Contractor gives written notice the same day and stops work in that area. The CM and Engineer inspect and confirm a Type I differing site condition. Because the excavation is on the critical path, the Owner cannot wait weeks to negotiate. The Engineer prepares and the Owner signs a Work Change Directive instructing the Contractor to remove the obstruction on a time-and-materials basis, with the CM verifying daily force account records. Meanwhile the CM prepares an independent estimate and the Contractor submits a proposal including a time impact analysis. After negotiation the CM recommends a lump-sum value and a five-day extension to the Owner, who approves. A Change Order is then executed, converting the directive, adjusting the Contract Sum and Time, and closing the item in the log. Separately, when the Engineer clarifies the rebar lap length at a column by reference to the existing specification, that clarification is issued as a Field Order because it involves no cost or time change.

Exam Tips: Answering Questions on Change Orders, Field Orders and Change Directives
Tip 1 — Hunt for the signal words. If the question says bilateral, signed by Owner and Contractor, adjusts the Contract Sum and Time, or final agreement, the answer is Change Order. If it says unilateral, proceed immediately, parties cannot agree on price, or pending agreement, the answer is a Construction Change Directive or Work Change Directive. If it says minor, consistent with the intent of the contract documents, no change in cost or time, or clarification, the answer is Field Order (or Minor Change / ASI).
Tip 2 — Remember the CM recommends; the Owner approves. When a question asks what the CM should do with a Contractor change proposal, the best answer is almost always to evaluate it against an independent estimate, negotiate, and recommend action to the Owner, not to approve it, reject it unilaterally, or direct the Contractor to proceed. Only choose an answer where the CM approves the change if the stem clearly states that authority was delegated to the CM.
Tip 3 — Everything must be in writing. Any answer that involves a verbal directive, a handshake agreement, or telling the Contractor to proceed and work it out later without a written directive is a distractor. The CCM exam rewards documentation and process.
Tip 4 — Know the conversion sequence. A Change Directive is temporary and is always closed out by a Change Order. A Field Order never becomes a Change Order unless the Contractor gives notice that it affects cost or time, at which point the item is re-processed. If a question asks what happens after the directed work is complete and priced, the answer is conversion into a Change Order.
Tip 5 — Independent estimate comes first. If asked for the first step after a change is identified or for the best way to evaluate a Contractor proposal, choose preparing the CM independent estimate before reviewing the Contractor pricing. This is a classic CMAA Standards of Practice point.
Tip 6 — Separate entitlement from quantum. Questions describing a Contractor request often test whether the Contractor is actually entitled to a change under the contract (for example, work already required by the specifications is not a change) before any pricing discussion.
Tip 7 — Time impacts need schedule analysis. If a question involves a request for additional time, the correct evaluation method is a time impact analysis using the current updated schedule, not an unsupported percentage or a verbal estimate.
Tip 8 — Watch the Contractor notice trap. If the Contractor performs changed work without giving the required written notice, the typical exam answer is that the Contractor has jeopardized or waived its right to additional compensation or time. Conversely, if a Field Order will cost money, the Contractor must notify before proceeding.
Tip 9 — Match terminology to the contract family. AIA uses Change Order, Construction Change Directive and Minor Change in the Work (ASI). EJCDC uses Change Order, Work Change Directive and Field Order. ConsensusDocs uses Change Order and Interim Directed Change. If a question names a document family, apply its specific terms.
Tip 10 — Think Owner protection and cumulative impact. When choosing among plausible answers, prefer the one that protects the Owner contingency, maintains complete logs, flags trends and root causes, prevents constructive changes, and ensures all directives are converted and all changes incorporated into the schedule, schedule of values and record documents before closeout.
Tip 11 — Eliminate extreme or adversarial answers. Answers that have the CM reject a change out of hand, order the Contractor to stop all work, or threaten default over a routine pricing disagreement are usually wrong. The CMAA approach is procedural, collaborative and documented, using a Change Directive when the Owner needs work to proceed despite disagreement.
Tip 12 — Read for who issues the document. The Owner issues (signs) Change Orders and Change Directives; the design professional (or CM if authorized) issues Field Orders; the Contractor never issues any of the three but may request them. Questions asking who has authority are testing exactly this.

Quick Recap
Change Order = agreed, signed, final adjustment of price and/or time. Field Order = minor, no price or time change, Contractor must object before proceeding if it disagrees. Change Directive = Owner says proceed now, price and time resolved later, then converted to a Change Order. The CM identifies, logs, estimates independently, analyzes schedule impact, negotiates, recommends to the Owner, documents everything in writing, and closes out every change before final payment.