Part of the Ontario construction contracts guide for owners.
Under CCDC 2, a change order records a change whose price and time are already agreed and is signed by the owner and the contractor; a change directive orders the contractor to proceed now and settles the price later, based on actual cost; and a site instruction (a “Supplemental Instruction” in CCDC 2) clarifies the work without changing the price or time at all. Picking the wrong document is one of the easiest ways for an owner to lose control of cost.
Below: what each document does, a side-by-side table, the usual path a change takes, and the mistakes owners make. For a deeper dive on the two main change tools, see our change directive vs change order guide.
Change directive vs change order vs site instruction: the short version
- Site (supplemental) instruction. Issued by the consultant to clarify the drawings or give a minor instruction. It doesn’t change the contract price or contract time.
- Change order (GC 6.2). The owner asks for a change, the contractor prices it, and once price and time are agreed, the consultant prepares a change order for both parties to sign. It changes the scope, price and time of the contract.
- Change directive (GC 6.3). Used when the work can’t wait for agreement. The consultant prepares it, the owner alone signs it, and the contractor must proceed promptly. The price adjustment is later based on the contractor’s actual net cost of the change, plus an allowance for overhead and profit, and the directive is then converted into a change order.
| Site (supplemental) instruction | Change directive | Change order | |
|---|---|---|---|
| What it is | Clarification or minor instruction | Order to proceed before price and time are agreed | Agreed change to the contract |
| Prepared / issued by | Consultant | Consultant prepares; owner signs | Consultant prepares |
| Contractor signs? | No | No | Yes, with the owner |
| Price and time agreed? | No change to either | Not yet; settled later | Yes, before it is signed |
| Contractor proceeds | On receipt | Promptly, on receipt | Once signed |
| How the price is set | Not applicable | Actual net cost of the change, plus overhead and profit allowance | Negotiated from the contractor’s quote |
| CCDC 2 clause | GC 2.2 | GC 6.3 | GC 6.2 |
What is a change directive, and when should owners use one?
A change directive is a tool for speed, not for saving money. It keeps the project moving when the owner and contractor can’t agree on price or time quickly enough. The cost of that speed is that the owner gives up a fixed price for the change: the adjustment follows the contractor’s actual expenditures, which the owner then has to verify.
The 2020 edition of CCDC 2 tightened what can be charged: costs may only be charged if they contribute directly to the change directive, and some categories allowed in the 2008 edition were removed. Even so, an owner using a directive needs records, daily reports and someone checking the costs as they happen, not months later.
Site instruction vs change order: where owners get caught
A site instruction is meant for clarifications that don’t affect price or time. Problems start when an instruction that really is a change goes out labelled as a clarification. The contractor builds it, and later submits a claim. By then the work is done, the owner has no quote to compare against, and the argument is about whether the instruction was a change at all.
The fix is a clear rule: if there is any doubt that an instruction affects cost or time, ask for a price first, as a proposed change, before anyone builds it.
Change event vs change order, and change order vs amendment
Change event is not a CCDC term. Many teams and software tools use it for a potential change that has been identified but not yet priced or approved. It is useful for tracking, but it has no contractual effect until it becomes a change order or a directive.
Change order vs amendment: a change order is itself a written amendment to the contract, limited to the work, price and time. Changes to other terms, such as payment or insurance provisions, are usually made through a separate amendment agreed by both parties.
Common owner mistakes
- Using site instructions for real changes. If it adds work, it needs a price.
- Leaving change orders unsigned. An agreed but unsigned change order invites disputes later.
- Using directives as a default. Each one turns a fixed price into a cost-reimbursable piece of work.
- Not tracking directives to closure. Every open directive is unpriced exposure in your forecast. Our guide to managing change orders covers the log and the reporting.
- Not agreeing on valuation rules up front. Set markups, unit rates and documentation requirements in the supplementary conditions before the contract is signed.
FAQ
What is the difference between a change directive and a change order?
Under CCDC 2, a change order records a change to the work whose price and time have already been agreed, and both the owner and the contractor sign it. A change directive tells the contractor to proceed with a change before price and time are agreed; only the owner signs it, and the change is valued afterwards based on actual cost.
What is a change directive?
A change directive (CCDC 2, GC 6.3) is a written instruction, prepared by the consultant and signed by the owner, that requires the contractor to proceed promptly with a change when price and time haven't been agreed. The adjustment is later set from the contractor's actual net cost of the change, plus an allowance for overhead and profit.
Is a site instruction the same as a change order?
No. A site instruction, called a Supplemental Instruction in CCDC 2, is a clarification or minor instruction from the consultant that does not change the contract price or contract time. A change order does change price, time or both, and is signed by the owner and the contractor.
What is the difference between a change event and a change order?
A change event is an informal term, used by many project teams and software tools, for a potential change that has been identified but not yet priced or approved. It becomes a change order only when price and time are agreed and the document is signed.
Is a change order the same as a contract amendment?
A change order is a type of contract amendment limited to changes in the work, price and time under the contract's change process. Changes to other contract terms, such as payment conditions or insurance, are usually made through a separate amendment signed by both parties.
The bottom line
Use a site instruction only when nothing changes, a change order whenever you can agree the price first, and a change directive only when the work truly can’t wait. Then track every open directive until it becomes a signed change order. Our owner tools can help you size the exposure.
Facing a pile of open changes on a project? Book a 30-minute call and we’ll help you get them under control.
Sources: Examitect, CCDC 2 study notes; Issued for Interns, Construction Change Directive under CCDC 2; Clark Wilson LLP, Changes in the Contract Work: CCDC 2’s General Condition 6; BLG, CCDC 2 updates to the stipulated price contract (2020); Enlyten Circle Advisors, Change orders, change directives and claims. This article is general information, not legal advice; read your own contract and supplementary conditions.