Hand-drawn comparison of a Change Order for an agreed change, a Construction Change Directive with an adjustment pending, and an ASI for a qualifying minor change
Conceptual document scenes, not reproductions of AIA forms.

Connect each construction-administration issue to the right document, the right reviewer, and the next action — before reaching for a specific AIA form number. Five decisions repeat across site visits, submittals, payment applications and closeout: which change document applies, who is actually reviewing what, how a defect gets corrected, what a payment application really owes, and when the project is actually done.

For ARE Construction & Evaluation (CE), these five decisions cover a large share of the construction-administration content. This KPath study guide works through each one with an original illustration, a short example, and three practice questions.

Where this fits in the CE exam

Content sectionTarget rangeTopics in this guide
Preconstruction Activities17–23%Delivery method, bidding, qualifications, cost/scope/schedule adjustments
Construction Observation32–38%Nonconforming work and uncovering costs; progress, schedule, critical path
Administrative Procedures & Protocols32–38%RFI / CO / CCD / ASI, submittals, payment and retainage
Project Closeout & Evaluation7–13%Substantial vs. final completion; punch list, O&M, warranties
The CE content framework follows NCARB’s four content sections. Target ranges describe typical exam forms, not a prediction of your questions.

1. Change Order, CCD and ASI

Three documents move work forward during construction, and the exam rewards knowing which one fits a given moment: have the Owner and Contractor actually agreed on the price and time effect, and does work need to start before that agreement is reached?

  • Change Order (CO). Records an agreed change and its agreed effect on the Contract Sum and Contract Time — even when that effect is zero. Owner, Contractor and Architect all sign it.
  • Construction Change Directive (CCD). Directs a change before the parties fully agree on price or time. Owner and Architect sign it; the Contractor proceeds under the directive while the adjustment is worked out.
  • Architect’s Supplemental Instructions (ASI). A clarification, or a minor change consistent with the contract’s intent, issued without a sum or time adjustment. If the Contractor believes a so-called minor change actually affects cost or time, it must give the required notice before proceeding — an ASI cannot bypass that formal change workflow.
Hand-drawn comparison of CO for an agreed change, CCD with an adjustment pending, and ASI for a clarification or qualifying minor change
Conceptual document scenes, not reproductions of AIA forms.

Example: a revision enlarges the reception desk. If the price is still unresolved and work must proceed now, that’s a CCD. If the change and its price/time effect are already agreed, it’s a CO.

2. Submittals and who reviews what

A submittal — a shop drawing, product data, or sample — shows what the Contractor proposes to build or supply. Two different reviews happen before a submittal is considered settled:

  • The Contractor checks field information and coordination before forwarding a submittal.
  • The Architect (or consultant) reviews it for conformance with the design concept and the Contract Documents, within the scope the contract actually assigns to that review.
Hand-drawn supplier preparing a stair submittal, contractor coordinating field information, and architect comparing proposed work with design drawings
Different review roles; the stair and field scene are conceptual, not a standard construction detail.

Example: a stair shop drawing arrives without the Contractor’s own review. Return it for that review, and flag any apparent design conflict separately.

3. Nonconforming work and the cost of uncovering it

Nonconforming work fails to meet what the Contract Documents actually require — compare the observed condition against the real requirement, then document and address the mismatch.

Example: required flashing was left out. Adding it corrects the defect; it isn’t automatically extra scope. If the Owner now wants work beyond the original contract, that gets evaluated as a change.

The uncovering question turns on one fact: was there a prior requirement or request to examine the work before it was covered?

  • If work was covered against an instruction or request to examine it, the Contractor pays to uncover and restore it, with no added time.
  • If there was no such prior requirement, a later examination of conforming work may justify a sum or time adjustment for the Owner. Nonconforming work found that way is still uncovered and corrected at the Contractor’s expense.
Three hand-drawn wall-uncovering scenarios: covered against instruction, later check finding conforming work, and later check finding nonconforming work
Later-check branches assume no prior examination requirement or request.

4. Reading a progress-payment application

Retainage is an amount withheld under the payment terms; its rate and release conditions come from the specific contract, not a fixed industry number.

Completed work plus eligible stored materials, minus retainage, minus amounts already certified, equals the amount currently due. "Not yet installed" doesn’t automatically mean "not payable" — materials stored off-site can still qualify once a contract’s approval, storage and protection conditions are met.

LineAmount
Completed work + eligible stored materials$320,000
Retainage (10%)− $32,000
Earned less retainage$288,000
Previous certificates− $188,000
Current amount due$100,000
Teaching example, USD, assumed 10% retainage.

$188,000 previously certified + $100,000 current due + $32,000 retained = $320,000.

Hand-drawn building in progress and stored materials beside a ledger with previously certified, current due and retained document groups
Concept illustration only — the worked numbers are in the table above.

5. Substantial completion vs. final completion

Substantial completion means the work is far enough along for the Owner’s intended use. The Architect evaluates the milestone and prepares its certificate; Owner, Contractor and Architect all sign it. Punch-list items may still remain.

Final completion means the remaining work, and the required closeout conditions, are satisfied — manuals, warranties, and record information among them.

Hand-drawn library at substantial completion with minor finishing remaining, and at final completion with the work and required handoff complete
Remaining items must still permit safe, intended use.

Example: minor paint touch-ups can remain at substantial completion. A missing essential life-safety component can prevent it.

6. Check your understanding

Three original practice questions apply the five decisions above.

Practice question · 01A revision with no cost but added time

A revision costs $0 but adds two days to the schedule, and all parties agree to it. Which document fits?

View the explanation

Agreed scope and time adjustments — even a $0 one — belong in a Change Order. An ASI by definition carries no sum or time adjustment, so it doesn’t fit once the parties agree to add two days. An RFI only asks a question; it doesn’t record an agreement.

Practice question · 02Uncovering work with no prior requirement

No prior examination requirement or request applied to a piece of work. A later uncovering finds the work conforms. What’s the likely outcome?

View the explanation

Without a prior requirement or request to examine the work, a later check that finds conforming work can justify an adjustment for the Owner. Option A ignores that there was no prior requirement. Option C incorrectly assumes the work has lost its examination rights.

Practice question · 03Recalculating at a different retainage rate

Using the $320,000 completed-plus-stored total and $188,000 previously certified from this guide’s payment example, what is the current amount due if retainage is 5% instead of 10%?

View the explanation

$320,000 − $16,000 retainage − $188,000 previously certified = $116,000. Option B skips subtracting the previous certificates. Option C only subtracts retainage and stops there.

Frequently asked questions

What’s the difference between a Change Order, a CCD, and an ASI?

A Change Order records an agreed change and its agreed price and time effect, signed by the Owner, Contractor and Architect. A Construction Change Directive directs work before that agreement is reached, signed by the Owner and Architect, with the Contractor proceeding under the directive. An ASI is an Architect-issued clarification or qualifying minor change made without any sum or time adjustment.

Does Architect review of a submittal make the Contractor’s work correct?

No. Architect review checks conformance with the design concept and the Contract Documents within the agreed scope of that review. It does not verify the Contractor’s field coordination or accuracy, and it does not transfer the Contractor’s responsibility for the submitted work.

If uncovered work turns out fine, does the Owner owe anything for uncovering it?

It depends on whether a prior examination was required or requested. Without that prior requirement, uncovering conforming work can justify a sum or time adjustment for the Owner. If the work was covered against an instruction to examine it, the Contractor bears that cost.

What goes into the amount currently due on a progress payment?

Completed work plus eligible stored materials, minus retainage, minus amounts already certified in earlier payment applications. Retainage rates and release conditions come from the specific contract, not a fixed industry number.

Can stored materials be included in a payment application before they’re installed?

Yes, when the contract’s approval, storage and protection conditions for off-site materials are met. "Not yet installed" doesn’t automatically mean "not payable."

What’s left to do between substantial and final completion?

The remaining punch-list work, plus the closeout conditions the contract requires — commonly manuals, warranties and record information — before final completion and the final payment application.

Which ARE 5.0 division tests this content?

These five concepts sit inside Construction & Evaluation (CE)’s administration-of-the-contract domain: document choice, submittal review, nonconforming work, payment calculations and project closeout.

Course lessons and sources

Continue in the KPath course

Review the connected knowledge points.

CE · Day 10CCD and Change Order differ on agreementCE.D5.CHANGE.018 CE · Day 06Architect review is limited to conformance with design concept and Contract DocumentsCE.D3.SUBM.004 CE · Day 09Covered without a prior examination requestCE.D4.NONC.015 CE · Day 13Subtract previous certificates to find current paymentCE.D6.CALC.005 CE · Day 17Keep Substantial Completion separate from Final CompletionCE.D8.SUBC.002

Lessons open in your KPath account — sign in or create a free account to continue.

Sources checked November 1, 2026. Examples, questions and the study sequence are original KPath teaching material.

  1. NCARB — ARE 5.0 Guidelines: CE content sections and target ranges.
  2. AIA — Change Orders, Construction Change Directives, and minor changes
  3. AIA — Contractor review of subcontractor submittals, A201–2017 §3.12.6
  4. AIA A201–2017 official sample: §§4.2.6–4.2.7 and 12.1.
  5. AIA — G711–2018 field report and limits of site observation
  6. AIA — A101–2017 instructions, progress payment and retainage provisions
  7. AIA — Stored materials and A201–2017 §9.3.2
  8. AIA — G704–2017 substantial completion instructions
  9. AIA — Correction period and warranty distinction
  10. AIA — Owner’s right to carry out the work under A201–2017 §2.5