# What is a Change Order? Change Orders, CCDs, and PCOs Explained

Published: 2026-07-18
Canonical: https://cogram.com/glossary/change-order
Part of: Cogram AEC Glossary (https://cogram.com/glossary)
Publisher: Cogram — AI tools for architects and engineers (https://cogram.com)

---
A change order is a written amendment to the construction contract, signed by the owner, the contractor, and the architect, that changes the work, the contract sum, the contract time, or any combination of the three. It is the only instrument that changes the contract price by agreement of all parties.

## The three change instruments

AIA A201-2017 Article 7 defines a graduated set of tools for changing the work. Understanding which one applies is mostly a question of two variables: does the change affect cost or time, and have the parties agreed on the amount?

| Instrument | Changes cost/time? | Agreement reached? | Signed by |
|---|---|---|---|
| [ASI](/glossary/asi) (minor change) | No | Not needed | Architect alone |
| Change order | Yes | Yes, on amount and time | Owner, contractor, architect |
| Construction change directive (CCD) | Yes | Not yet | Owner and architect |

In prose: a no-cost clarification is an ASI. A priced, agreed change is a change order. A change the owner needs to proceed with before the price is settled is a construction change directive, which directs the contractor to perform the change while the adjustment is determined by the method the directive states; it converts to a change order once the parties agree.

## PCO: the tracking stage

A potential change order (PCO) is not an AIA contract instrument; it is a project-management record. When an event that may justify a change surfaces (an RFI answer with cost impact, a differing site condition, an owner request), the contractor logs it as a PCO, prices it, and submits it as a change proposal. Approved, it becomes a change order; rejected or withdrawn, the PCO record documents that the item was raised and resolved. On a well-run job, the PCO log is where the owner sees cost exposure before it lands.

## The design team's role

The architect prepares change orders and CCDs, evaluates the contractor's pricing against the documents, and advises the owner. Two discipline points recur:

- **Keep the channels clean.** Cost items settled informally inside RFI responses or meeting minutes create ambiguity about what the contract now says. The change instruments exist so the record is unambiguous.
- **Track the aggregate.** Individual changes are judged one at a time, but the running total against contingency is what the owner needs to see, and the architect's change order log is often the authoritative version.

## Related terms

- [ASI](/glossary/asi): the no-cost instrument.
- [RFI](/glossary/rfi): the question channel that surfaces many change events.
- [Contract administration](/glossary/contract-administration): the architect's role processing changes.

## Frequently asked questions

**Who signs a change order?**
Owner, contractor, and architect, under the AIA documents. All three signatures make it a full amendment to the contract.

**What is a construction change directive (CCD)?**
A written directive, signed by the owner and the architect, ordering a change before the price or time adjustment is agreed. The contractor must proceed; the adjustment is determined by the method the directive states and the item converts to a change order when agreement is reached.

**What does CCD stand for in construction?**
Construction change directive. Searches for "cc'd" in a construction context usually mean this instrument rather than email carbon copy.

**What is a PCO?**
A potential change order: the contractor's tracking record for an event that may become a change order. It is a management log entry, not a contract instrument, and carries no authority until processed into a change order.

**Can work proceed without a signed change order?**
Only under a construction change directive, or at the contractor's risk. Proceeding on verbal direction is the classic source of end-of-project disputes, which is why the general conditions provide the CCD as the formal interim instrument.