hardhatU
Concept

Construction Change Directive

A written order from the owner, issued through the architect, directing the contractor to proceed immediately with a change in the work, a change in scope, materials, or method, before the cost or schedule impact has been negotiated and agreed to, used specifically when work can't wait for a full [[concept-change-order|change order]] to be worked out first.

Why it matters

Sometimes a change has to happen right now, an unexpected condition, a code issue, and waiting weeks to negotiate price before proceeding would stall the whole project. A construction change directive lets work continue immediately while the actual cost and time impact get settled afterward, instead of holding the job hostage to a negotiation.

On a real project

A structural issue is discovered that requires an immediate design change to keep the schedule from stalling. Rather than waiting for the contractor and owner to agree on a price first, the architect issues a construction change directive ordering the work to proceed, with the final cost to be determined once the scope is fully known.

Who this matters most to

A Project Manager has to track work performed under a construction change directive carefully, since the final price isn't settled yet and thorough cost documentation is what determines what the contractor actually gets paid. A Contracts Administrator makes sure a directive eventually converts into a properly executed change order once the number is agreed, rather than staying open indefinitely.

Where this goes wrong

A contractor performs several weeks of work under a construction change directive without tracking labor and material costs in real time, assuming they'll reconstruct the number later. When it's time to negotiate the final price, the contractor has no detailed record to support their cost claim, and the owner successfully negotiates the price down simply because the contractor can't prove what it actually cost.