Construction administration is the phase of a project where the architect shifts from designer to administrator, overseeing the construction process to make sure the project gets built according to the contract documents. This guide covers the documentation and communication systems that make construction run: RFIs, ASIs, change orders, CCDs, submittals, the schedule of values, payment applications, and how to handle non-conforming work. Whether you’re studying for the CE exam or managing real projects, understanding which document to use and when is what separates confident architects from overwhelmed ones.
This podcast is also available on YouTube, Spotify, and Apple Podcasts
What Is Construction Administration?
Think of a construction project as having two parallel tracks running at the same time.
One track is construction observation, which is about being physically on the job site, watching the work, and evaluating whether it matches the contract documents.
The other track is construction administration, which is everything that happens on paper to support that work. The RFIs. The submittals. The payment applications. The change orders. All the documentation and communication that keeps a project organized and protects everyone involved.
Construction administration spans from the start of construction through project closeout. During this phase, the architect’s job is to review documents, certify payments, respond to contractor questions, and make sure the project stays on track.
If you’re preparing for the ARE Construction and Evaluation exam, construction administration falls under Section 3: Administrative Procedures and Protocols. The CE exam is divided into four sections:
- Section 1: Preconstruction Activities (17-23%)
- Section 2: Construction Observation (32-38%)
- Section 3: Administrative Procedures and Protocols (32-38%)
- Section 4: Project Closeout and Evaluation (7-13%)
Section 3 makes up 32 to 38 percent of the CE exam, which means 24 to 29 questions out of 75. It’s tied with Section 2 as the largest section of the division.
Section 3 covers four objectives: knowing which documents to use for supplemental information, evaluating submittals, reviewing payment applications, and handling non-conforming work.
If you want a structured approach to mastering all of this, our CE 101 course breaks down every objective with video lessons, practice questions, and case studies that show how these processes connect in real projects.
Here’s the thing about construction administration that most people don’t realize until they’re in it: the paperwork is the protection. When something goes wrong on a project, and something always goes wrong, the first question is always, “Where’s the documentation?” If it wasn’t documented, it didn’t happen.
Construction Administration Documents: Knowing Which One to Use
During construction, situations come up constantly that require a formal response. A contractor has a question. Something unexpected shows up on site. The owner wants a change. A detail doesn’t match the specs.
The challenge isn’t recognizing that something needs to be addressed. The challenge is knowing which document fits which situation.
There are five main document types in construction administration, and each one has a specific purpose. Choosing the wrong one can create liability issues, delay the project, or void contractual protections.
Here’s the quick framework:
- If it’s a question or clarification about the contract documents: RFI
- If it’s a minor interpretation that doesn’t affect cost or time: ASI
- If it changes cost, time, or scope and everyone agrees: Change Order
- If it changes cost, time, or scope but agreement hasn’t been reached and work can’t wait: CCD
- If additional drawings are needed to clarify or support any of the above: Supplemental Drawings
The dividing line is simple: does this affect money or time? If no, you’re probably looking at an RFI or ASI. If yes, you’re in change order or CCD territory.
Getting this wrong is one of the most common construction administration mistakes. Using an ASI when you should have used a change order, for example, means you’ve issued a directive with no contractual adjustment for cost or schedule. That’s a problem.
RFIs (Requests for Information)
An RFI is a formal written question from the contractor asking for clarification on the contract documents. It’s documented on AIA G716.
RFIs need to be logged, tracked, and responded to within the timeframe specified in the contract. Good responses are clear and directly address the question. Vague or incomplete responses just create more RFIs.
Here’s something worth remembering: RFIs are a normal part of construction. They’re not a sign that your documents are bad. Even the best set of construction documents will generate RFIs because contractors need to confirm their understanding before building.
Think of RFIs like text messages in a relationship. If you don’t respond promptly and clearly, things are going to get awkward.
For the complete breakdown of what makes a good vs. bad RFI and how the process works, check out our detailed guide on RFIs in construction.
ASIs (Architect’s Supplemental Instructions)
An ASI, or architect’s supplemental instruction, is a document used to issue minor clarifications or interpretations during construction. It’s documented on AIA G710.
Here’s the critical rule: ASIs cannot change the contract sum or contract time. The second money or schedule is affected, you’re in change order territory. This is a line the exam will test you on.
Unlike RFIs, ASIs are initiated by the architect. You don’t have to wait for the contractor to ask a question. If you see something in the field that needs clarification, or if you want to provide additional detail that’s consistent with the original design intent, an ASI is the right tool.
ASIs also do not require the owner’s signature. That’s a key difference from change orders, which require all three parties (owner, architect, contractor) to sign.
Common use cases for ASIs:
- Clarifying a detail that’s unclear on the drawings
- Providing additional information the contractor needs to proceed
- Minor interpretation of specifications
When NOT to use an ASI:
- When the clarification reveals additional work beyond the original scope
- When the contractor will claim a cost or time impact
- When the change goes beyond interpreting what’s already in the documents
If any of those conditions apply, you need a change order, not an ASI. Architects sometimes try to use ASIs to avoid the change order process, and that’s a fast track to liability problems.
Change Orders
A change order is required whenever there’s a change to the contract sum, contract time, or scope of work. It’s documented on AIA G701.
Change orders must be signed by all three parties: owner, architect, and contractor. That three-way agreement is what makes them legally binding.
Changes can come from anywhere: the owner requests something different, unforeseen conditions show up on site, code requirements change, or there’s an error or omission in the documents that needs to be addressed.
The change order process can feel like a three-way negotiation. The owner wants to minimize costs. The contractor wants to maximize them. And you’re in the middle trying to ensure fairness to all parties.
For the full breakdown of how change orders work, the difference between change orders and other documents, and how they get priced, check out our complete guide on construction change orders.
Construction Change Directives (CCDs)
A construction change directive, or CCD, is the emergency tool in construction administration. It’s used when a change to the work must proceed before the owner and contractor agree on a price.
CCDs are documented on AIA G714.
Here’s the key difference from a change order: a CCD only requires the owner and architect signatures to issue. The contractor’s signature is not required for work to proceed. This is what makes CCDs so valuable in time-critical situations.
Work proceeds while cost negotiations continue. The contractor can sign the CCD later to indicate agreement with the price and time adjustment, and at that point it essentially becomes a change order.
Think of a CCD like an emergency credit card. You only use it when you absolutely have to, but it can save the project when stopping work would cause more damage than moving forward.
When to use a CCD: The foundation excavation reveals contaminated soil. You can’t just stop the project and wait weeks for everyone to agree on a price. A CCD lets you direct the contractor to address the issue while the cost gets worked out.
Supplemental Drawings
Supplemental drawings are additional drawings that clarify or elaborate on the original contract documents.
They’re often attached to ASIs, change orders, or RFI responses to provide the visual detail that supports the written direction. They must be clearly labeled with the date and a reference to the associated document.
Once issued, supplemental drawings become part of the contract documents. They carry the same contractual weight as the original drawings.
Submittal Review in Construction Administration
Submittal review is one of the most time-consuming parts of construction administration. On a medium-sized project, you might review hundreds of submittals.
The purpose is straightforward: submittals confirm that the contractor understands what they’re supposed to build and that the products and systems they’re proposing match the contract documents. It’s quality assurance before construction starts. It’s much easier to catch and fix problems on paper than after things are built.
The five submittal types are shop drawings, product data, samples, mock-ups, and test results.
When reviewing submittals, the architect focuses on design intent, not means and methods. You’re checking whether what the contractor is proposing matches what you designed, not telling them how to install it.
One thing the exam loves to test: the architect only reviews submittals that are required by the contract documents. If the contractor sends an unsolicited submittal for something the specs didn’t ask for, the standard procedure is to return it without action.
The standard review actions are:
- No Exceptions Taken: Proceed as submitted
- Approved as Noted: Incorporate minor comments, no resubmittal needed
- Revise and Resubmit: Make corrections and submit again
- Rejected: Does not comply, prepare a new submittal
A critical point: submittal review does not transfer responsibility to the architect. AIA A201 is very clear on this. The contractor remains responsible for dimensions, quantities, and installation. Missing an error during review doesn’t shift that responsibility.
For the full deep dive into the submittal process, types, and the complete workflow, check out our guide on construction submittals.
Schedule of Values and Payment Applications
The financial side of construction administration revolves around the schedule of values and the payment application process. This is where the architect takes on the role of financial guardian, making sure the owner isn’t paying for work that hasn’t been done.
What Is a Schedule of Values?
A schedule of values is a detailed breakdown of the contract sum into individual line items. The contractor submits it for the architect’s approval before the first payment application. It’s specifically required for stipulated sum (fixed price) and guaranteed maximum price (GMP) contracts. You won’t see a schedule of values on a time and materials contract because there’s no lump sum to break down.
It forms the basis for every payment request throughout the entire project. Each line item should reasonably reflect the actual value of that work, typically broken down into material and labor components.
The schedule of values is the financial roadmap for the project. If it’s set up poorly at the beginning, you’ll have payment problems throughout construction.
Red flags to watch for:
- Front-loading: Inflating early work items to improve the contractor’s cash flow. This is the most common issue. If “mobilization” or “general conditions” seems unreasonably high compared to the actual early work, that’s a red flag.
- Math errors: The line items need to add up to the contract sum. It sounds obvious, but it happens.
- Uneven distribution: Some items unreasonably high, others suspiciously low.
- Inadequate breakdown: Too many costs lumped under a single line item like “general conditions.”
- Missing items: Work that’s clearly required by the documents but doesn’t appear in the schedule.
AIA G702 and G703: The Payment Application Forms
Two AIA forms drive the payment process in construction administration:
AIA G702 is the Application and Certificate for Payment. This is the summary form. It tracks the original contract sum, approved change orders, completed work to date, stored materials, retainage, and the current amount due.
AIA G703 is the Continuation Sheet. This is the detailed backup. It breaks down each line item from the schedule of values and shows the percentage of completion for each one.
Think of the G702 as the dashboard and the G703 as the engine. The G702 gives you the big picture at a glance. The G703 gives you the detail behind every number.
These two forms work together on every monthly payment cycle. You can’t properly evaluate a payment application without reviewing both.
How the Payment Application Process Works
The payment process in construction administration follows a consistent cycle:
- The contractor submits the payment application (typically monthly)
- The architect reviews the claimed percentages against observed progress from site visits
- The architect may adjust amounts if work isn’t as complete as claimed
- The architect certifies the payment to the owner
- The owner makes payment based on the architect’s certification
This is where construction observation and construction administration directly connect. Your site visits give you the information you need to evaluate whether the contractor’s payment request matches reality.
Here’s something important to understand about certification. When the architect certifies a payment application, it’s based on their observations and the schedule of values. It does not mean the architect has made exhaustive or continuous on-site inspections. It does not mean the architect has reviewed construction means, methods, or techniques. This is straight from A201 and it’s a classic exam question.
The owner is relying on you to verify that they’re not paying for work that hasn’t been done. Once the money is gone, your leverage disappears.
Retainage
Retainage is a percentage of each payment withheld as security, typically 5 to 10 percent. It protects the owner against incomplete work or liens.
Retainage is calculated on every payment application. It accumulates throughout construction, creating a financial incentive for the contractor to complete all work, including punch list items.
The key milestone for retainage is substantial completion. When the architect issues the AIA G704 Certificate of Substantial Completion, retainage is often reduced (for example, from 10% down to 5%). This is also the point where warranties begin and the one-year correction period starts.
For the full breakdown of substantial completion, final completion, and the closeout process, check out our guide on project closeout and substantial completion. For a deeper look at how contract time and substantial completion connect, AIA’s explanation covers how A201 and A101 work together.
Retainage is released in full at final completion after all closeout requirements are met, including lien waivers, record drawings, and warranties.
Handling Non-Conforming Work
Even with solid submittals, a clean schedule of values, and consistent payment reviews, things still go wrong in the field. Non-conforming work is what happens when the contractor builds something that doesn’t match the contract documents. It’s the problem-solving side of construction administration, and it tests your ability to think on your feet.
Identifying Non-Conformance
Non-conformance can show up in a lot of ways:
- Wrong materials or products installed
- Incorrect installation methods
- Dimensions or locations that don’t match the drawings
- Work that doesn’t meet code requirements
- Quality standards not met
It’s usually discovered during site observations, but it can also be reported by testing agencies, the owner, or even the contractor themselves.
The sooner you catch non-conforming work, the easier and cheaper it is to fix. Once it’s covered up or built upon, correction becomes much more complicated and expensive.
Determining the Source
This step is critical because it determines who pays for the correction.
- Design error or omission: The documents were unclear or conflicting. This one falls on the architect.
- Contractor mistake: Failed to follow clear directions. This includes subcontractor coordination failures and unapproved material substitutions, since the general contractor is responsible for their subs.
- Unforeseen conditions: Existing conditions turned out to be different than expected. Construction contingency exists for exactly these situations.
- Owner-directed change without proper documentation: The owner told the contractor to do something verbally, without going through the formal change process.
Evaluating Resolution Options
Once you know what went wrong and who’s responsible, the next step is figuring out how to fix it. Options include:
- Remove and replace: The most straightforward approach, but often the most expensive.
- Repair or modify in place: Sometimes possible if the defect is minor.
- Accept as-is with a credit: If the work is functional but not aesthetically perfect, the owner may choose to accept it with a reduction in the contract sum, processed through a change order.
- Accept as-is with an extended warranty: If there are durability concerns but the work is otherwise acceptable.
The right approach depends on the specific situation, its impact on the project, and who’s responsible for the issue.
AIA A201 Section 12 covers uncovering and correction of work. The contractor is obligated to correct non-conforming work at their expense when it’s their fault.
The owner does have the right to accept non-conforming work, even if the architect disagrees with that decision. But you need to advise them of the potential consequences, the contract sum should be adjusted by an appropriate amount, and if you disagree, document your objection to protect yourself from liability down the road.
Documentation is everything in this process: field reports when the issue is discovered, formal non-conformance notices to the contractor, clear direction for correction, and tracking until the issue is fully resolved. Understanding how the A201 General Conditions govern these relationships between all parties is essential for handling non-conforming work effectively.
Common Construction Administration Mistakes
These are the construction administration mistakes that create the most problems on real projects and show up most frequently on the exam:
Using the wrong document for changes. Using an ASI when the change affects cost or time is one of the most common errors. Each document type has specific contractual implications. They’re not interchangeable.
Not documenting verbal conversations. If it wasn’t written down, it didn’t happen. Million-dollar disputes can hinge on conversations that weren’t followed up in writing.
Rubber-stamping submittals. Reviewing submittals requires actual attention, not just a quick stamp. Contractors may test architects by submitting non-compliant items to see if they’re actually being reviewed.
Over-certifying payments. Certifying payment for work that’s not complete puts the owner at risk. Your certification carries real contractual weight.
Delayed responses to RFIs or submittals. Most contracts specify response times. Missing these deadlines can lead to delay claims and schedule impacts.
Accepting substitutions informally. Substitution requests should go through proper channels with appropriate documentation and sign-offs. An informal approval creates liability exposure.
Not recognizing when tasks cross into additional services. Under AIA B101, certain construction administration tasks fall under basic services. But excessive contractor-generated RFIs or out-of-sequence submittals can trigger additional services. Know the line.
Construction administration procedures only work if everyone follows them consistently. Being strict about some issues but casual about others undermines your credibility and weakens the documentation trail.
How Construction Administration Appears on the ARE
Section 3 of the CE exam covers construction administration and makes up 32 to 38 percent of the test. That’s 24 to 29 questions out of 75. It’s tied with Section 2 (Construction Observation) as the largest section.
The four objectives within Section 3 are:
- Objective 3.1: Knowing which supplemental document to use in which situation (RFIs, ASIs, change orders, CCDs)
- Objective 3.2: Evaluating submittals, shop drawings, samples, and substitution requests
- Objective 3.3: Evaluating payment applications and the schedule of values
- Objective 3.4: Handling non-conforming work and determining appropriate resolutions
The exam tests application, not definitions. You need to know which document to reach for in a scenario, not just what each document is called. NCARB presents situations and asks you to make the right decision as the architect.
Study tips for mastering construction administration:
- Get familiar with the actual AIA forms: G701 (change orders), G702/G703 (payment applications), G710 (ASIs), G714 (CCDs), G716 (RFIs). Don’t just know their names. Know what’s in them.
- Draw process flowcharts: Map out how an RFI flows into a potential change order, and how that change order then affects the payment application. Understanding the connections is more important than memorizing individual steps.
- Read the A201 General Conditions: Especially Articles 3.12 (Shop Drawings, Product Data and Samples), 7 (Changes in the Work), 9 (Payments and Completion), and 12 (Uncovering and Correction of Work).
- Practice with real scenarios: Ask coworkers if you can review actual RFIs, submittals, and change orders from their projects. Seeing real examples makes the exam scenarios feel familiar.
Our CE 101 course includes two detailed case studies that walk through real-world scenarios from bid through post-occupancy, over 200 practice questions with about 70 focused on Section 3, and video tutorials breaking down each objective and document type.
When you sign up for CE 101, you also get access to our AIA Contracts 101 course. This is the only ARE-focused AIA Documents course available, covering every AIA document tested on the exam in detail. Thousands of people have used this course to get licensed. Understanding AIA contract documents is critical for Section 3, where every document type connects back to the A201 General Conditions.
If you want structured guidance and accountability rather than studying alone, our ARE Boot Camp provides a 10-week coaching program with weekly live meetings, community support, and a clear roadmap through all six exams.
Frequently Asked Questions
What is construction administration?
Construction administration is the phase of architectural practice where the architect oversees the construction process to ensure the project is built according to the contract documents. It includes reviewing submittals, responding to RFIs, processing change orders, evaluating payment applications, and conducting site observations. Construction administration typically spans from the start of construction through project closeout.
What is an ASI in construction?
An ASI, or architect’s supplemental instruction, is a document used to issue minor clarifications or interpretations that do not affect the contract sum or time. It is documented on AIA form G710. Unlike a change order, an ASI does not require the owner’s signature. If a change affects cost or schedule, it must be processed as a change order, not an ASI.
What is a schedule of values in construction?
A schedule of values is a detailed breakdown of the contract sum into individual line items, submitted by the contractor before the first payment application. It serves as the financial roadmap for the project and is the basis for evaluating all future payment requests. The architect reviews the schedule of values for accuracy and reasonableness before approving it.
What is a construction change directive?
A construction change directive, or CCD, is used when a change to the work must proceed before the owner and contractor agree on a price. It is documented on AIA form G714 and requires only the owner and architect signatures, not the contractor’s. Work proceeds while cost negotiations continue, and the CCD is eventually converted to a formal change order.
What is the difference between AIA G702 and G703?
AIA G702 is the Application and Certificate for Payment, which summarizes the total payment request including the original contract sum, approved change orders, completed work, and retainage. AIA G703 is the Continuation Sheet that breaks down each line item from the schedule of values with percentages of completion. The G702 is the summary page and the G703 provides the detail behind it.
Master Construction Administration and Pass the CE Exam
Construction administration is where architects really earn their fee during construction. The design matters, but proper administration is what ensures that design actually becomes reality.
Knowing which document to reach for in any situation gives you incredible confidence on job sites and in meetings with contractors and owners. You’ll know when to issue an ASI, when to push for a change order, how to evaluate a payment application, and how to handle non-conforming work professionally.
These aren’t just exam topics. They’re skills you’ll use throughout your entire career. A project with great design but poor construction administration often ends in disputes. A project with solid documentation and clear communication has a much better chance of success.
Ready to master construction administration and the entire CE exam? Join hundreds of successful candidates in our ARE Boot Camp for structured guidance and accountability, or access our self-paced CE 101 course for comprehensive study materials including case studies, practice questions, and AIA document breakdowns.
