Construction Financial Glossary

Change Directive Definition

A change directive is an instruction issued by a project owner or Architect that requires a contractor to proceed with a change in work before the cost or schedule impact has been fully agreed upon. It differs from a change order, which is a mutually agreed-upon modification.

Why Change Directives Are Used

They allow work to continue without delays when immediate adjustments are needed. While contractors must comply, the cost and schedule impact are later negotiated.

Handling Change Directives Properly

    1. Document all directive details to ensure proper cost recovery
    2. Maintain clear communication with the project owner regarding impact
    3. Track labor and materials associated with the change for accurate billing


Related Terms: Change Order, Contract Modification, Construction Claims, Scope Creep

FAQs

Can contractors refuse a change directive?

A: No, they are contractually obligated to proceed, but they can dispute the cost implications afterward.

How is a change directive different from a change order?

A: A change order is mutually agreed upon, while a change directive is issued unilaterally, with costs negotiated later.

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