Change Order vs. Change Directive vs. Change Request: What's the Difference?
The difference in change order vs change directive comes down to agreement: a change order is signed by both the owner and the builder and fixes the scope, price, and schedule of a change, while a change directive is an instruction from the owner to proceed with a change before the price and time have been agreed. A change request is one step earlier than both. It’s simply somebody asking for a change, and it authorizes nothing until it becomes a signed change order.
These terms get thrown around on job sites like they’re interchangeable. They aren’t, and the gap between them is exactly where builders end up doing work they never get paid for.
What is a change order?
A change order is a written amendment to the construction contract, signed by both parties, that documents a change in scope along with its effect on price and schedule. Once it’s signed, the contract total and the completion date are officially different.
The key word is agreed. A change order means the negotiating is over. Everyone knows what’s being built, what it costs, and how many days it adds. If you want the mechanics, I laid them out in how to write a construction change order.
Change order vs construction change directive: what’s the difference?
A construction change directive tells the builder to go ahead with a change now and sort out the money later. It’s most common in commercial work, where standard contract forms give the owner the right to issue one, usually prepared by the architect, so the job doesn’t stall while the parties argue about price.
The practical differences:
Signatures. A change order needs both parties. A directive can be issued by the owner alone.
Price. A change order states an agreed price. A directive proposes a method for figuring it out later, often time and materials plus a stated markup.
Risk. With a change order, the builder knows what they’ll be paid. With a directive, the builder is financing work on an open question.
Ending. A directive is supposed to turn into a change order once the cost and time are settled.
In custom home building, I’d avoid the directive model almost entirely. A homeowner isn’t a commercial owner with a construction manager and a legal department. If you start work on an unpriced change in someone’s house, the final number will be a surprise, and surprised clients don’t write checks quickly. My rule is no work without a signed and paid change order. The one sensible exception is an emergency, where waiting would damage the house or create a safety problem, and your contract should say how that gets handled.
Change order vs change request: which one authorizes work?
Only the change order does. A change request, sometimes called a change order request or a proposal request, is the start of the conversation. The client asks what it would cost to add a window. The builder prices it and presents it. Nothing has been approved yet.
The clean sequence looks like this:
Request. Someone asks for a change, in writing.
Pricing. The builder gets real numbers from the trades, including schedule impact.
Change order. The priced change is presented, signed, and paid.
Work. Only now does anyone pick up a tool.
Most change order disputes are really change request disputes. The client mentioned something on a site walk, the superintendent nodded, the trade built it, and now there’s an invoice nobody agreed to. A nod is a request. It’s never an approval.
Change order vs RFI: are they related?
They’re related, but an RFI doesn’t change anything by itself. A request for information is a question, usually from the builder or a trade to the architect or engineer, asking for clarification of the plans. Which way does this door swing? What’s the beam size at this opening?
If the answer just clarifies what was already drawn, there’s no cost and no change order. If the answer adds scope, like a bigger beam than anyone priced, the RFI becomes the backup for a change order. Keep the paper trail connected: the RFI explains why, the change order states how much.
Change order vs addendum vs amendment: which comes when?
The timing is the main difference. An addendum comes before the contract is signed, and a change order comes after.
Addendum. A change or clarification to the plans, specs, or bid documents issued before the contract is signed, so it’s included in the original price. People also use the word for an attachment added to a contract at signing.
Change order. A change to the scope, price, or schedule after signing, made through the process the contract already describes.
Amendment. A change to the terms of the contract itself, like the payment schedule, the warranty language, or who the parties are. Technically a change order is a kind of amendment, but in practice builders use “amendment” for changes to the legal terms and “change order” for changes to the work.
How these labels are treated can depend on your contract and your state, so have your attorney confirm the definitions in your own documents.
Change order vs purchase order: who is each one for?
They face opposite directions. A change order is between you and your client. A purchase order is between you and a supplier or trade partner, and it commits you to buy a defined scope at a defined price.
The two are connected on every change. When the client signs a change order for added work, you issue a purchase order, or a subcontract change order, to the trade doing it. Do it in that order. If you issue the purchase order first, you’ve committed to pay for work your client hasn’t committed to pay you for. Our Custom Home Change Order Template is built for the client side of that handoff.
Which of these should a home builder actually use?
For most custom home builders, the system is short:
Addenda to lock down the documents before signing.
RFIs to get questions answered in writing.
Change orders for every change after signing, including the free ones.
Purchase orders to pass each approved change to the trades.
What each document means and who can sign it should be defined in your change order clause. And if you’re wondering what to charge once you’re writing one, see change order markup.
Frequently asked questions
Is a change directive the same as a change order?
No. A change order is agreed and signed by both parties. A change directive is an owner’s instruction to proceed before price and time are agreed, and it’s meant to be converted into a change order later.
Can a builder refuse a construction change directive?
That depends on the contract. Many commercial forms require the contractor to proceed and resolve the cost afterward, so read your contract and ask your attorney before you sign one that includes directive language.
Does an RFI change the contract price?
Not by itself. An RFI is a question. If the answer adds or removes scope, a change order is what changes the price.
Is a change order an amendment to the contract?
In effect, yes. It modifies the scope, price, or time of the original agreement. Most builders reserve the word “amendment” for changes to the legal terms and use “change order” for changes to the work.
BTW, if you want one form and one process that turns every change request into a signed, paid change order, grab our Custom Home Change Order Template over at the Building Optimal Shop, where you can check out the rest of our swag to build a better business. Proceeds go to benefit, Exponencialistas, my non-profit investing in entrepreneurs transforming their communities in Latin America.