Construction Change Directive: What It Is Under CCDC 2

If you searched "construction change directive," you found the right idea under a slightly American name. In Canada, the instrument you are looking for is the Change Directive, set out in GC 6.3 of the CCDC 2 (2020) Stipulated Price Contract. It is one of the tools the project team uses to keep a job moving when a change is needed but the owner and contractor have not yet agreed on what it costs or how much time it adds.

That timing gap is the entire point of a change directive, and it is exactly the distinction the ExAC likes to test. This post explains what a change directive is, who signs it, how it gets valued, and how it differs from a change order. For the full picture of every document in the change management chain, see our guide to site instructions and supplemental instructions on the ExAC.

What a change directive actually is

Under CCDC 2 (2020), a change directive is a written instruction prepared by the Consultant and signed by the Owner. It directs the contractor to proceed with a change in the work, within the general scope of the contract documents, before the owner and contractor have agreed on the adjustment to the Contract Price and the Contract Time.

Three things make it distinct:

• The contractor must proceed promptly once it receives the directive. Agreement on price and time is settled afterward, not first.
• It cannot be used to direct a change to the Contract Time only. It is a tool for changes to the work itself.
• It is a way station, not a destination. The work covered by a change directive is eventually rolled into a change order once the price and time are determined.

In plain terms: the owner wants something done now, the parties have not finished negotiating the dollars, and the project cannot afford to wait. The change directive lets the work start while the accounting catches up.

Why Canadians drop the word "construction"

The term "construction change directive," often shortened to CCD, comes from the American AIA A201 General Conditions, Article 7. Under the AIA system, a CCD is signed by the owner and the architect, the contractor performs the work whether or not it agrees, and the architect makes an interim determination of cost if the parties cannot settle.

Canada runs on the CCDC suite instead, and the differences are worth knowing because the exam is written around Canadian documents:

• The Canadian document calls it a change directive, not a construction change directive.
• It is prepared by the Consultant — the CCDC term that covers the architect or engineer named in the contract — rather than naming the architect directly.
• It is signed by the Owner alone, not by the owner and the architect together.

If your study materials or your firm's templates use American language, this is the translation. We cover more of these cross-border differences in our ARE vs ExAC comparison.

Change directive vs change order

This is the comparison that shows up on Section 4. A change order is an agreed change. A change directive is a directed change where agreement comes later.

How a change directive moves through its lifecycle

A change directive is a temporary instrument, not a permanent contract modification. Once the price and time are determined, it converts into a change order. The steps below show that progression:

1. Change directive issued — Consultant prepares it; Owner signs and issues to the contractor.
2. Contractor proceeds — Work begins promptly, regardless of any pricing disagreement.
3. Costs tracked — Contractor records actual expenditures and savings attributable to the directive.
4. Price and time valued — Parties determine the Contract Price adjustment using the cost categories in GC 6.3.
5. Converted to change order — Once price and time are agreed, a formal Change Order signed by both owner and contractor replaces the directive.

How a change directive gets valued

Because the work proceeds before the price is agreed, CCDC 2 has to set the rules for valuing it after the fact. The adjustment to the Contract Price for work carried out by a change directive is determined on the basis of the net cost of the contractor's actual expenditures and savings attributable to the directive.

The 2020 edition tightened this up. It reorganized the categories of cost a contractor can charge and made clear that a cost is only recoverable if it contributes directly to carrying out the change directive. Chargeable categories include items such as wages of office personnel working in a technical capacity, costs and rentals for construction equipment, certain legal and auditing costs, and project-specific information technology. The 2020 edition also removed some categories that the 2008 version had allowed — including wages for staff preparing or reviewing shop drawings.

Common mistakes to avoid

These are the trap doors candidates fall through:

• Assuming the contractor signs it. A change directive is signed by the owner. The change order it later becomes is signed by the owner and the contractor.
• Treating it as permanent. A change directive is a temporary instrument. The work it covers is converted into a change order once price and time are determined.
• Using it to change time only. CCDC 2 does not allow a change directive that adjusts the Contract Time on its own.
• Reaching for it when everyone already agrees. If the price and time are settled, a change order is the correct document. Pulling out a change directive signals you misread the scenario.

Frequently asked questions