A Change Directive is one of the most important — and potentially risky — tools used during Construction Administration. Unlike a typical Proposed Change where pricing is reviewed before work proceeds, a Change Directive can allow construction work to begin before the final cost has been agreed upon.
In this episode of What the RFI?, I break down how Change Directives work, why they are issued, how they eventually become Change Orders, and what architects, consultants, owners, and contractors need to consider before proceeding.
We cover:
• What is a Change Directive?
• Change Directive vs. Change Order
• Change Directive vs. Proposed Change
• Change Directives vs. Contemplated Change Notices (CCN)
• Why a Change Directive allows work to proceed immediately
• When a Change Directive should be considered
• Owner authorization and documentation
• How contractors track labour, materials, equipment, and costs
• Reviewing Change Directive pricing
• Challenging costs that don't appear reasonable
• Consultant involvement in reviewing costs
• Resolving disagreements over Change Directive pricing
• Unforeseen conditions and bad soils
• Real-world Construction Administration examples
• Why Change Directives need to be used carefully
One of the biggest differences is timing.
With a typical Proposed Change, the design team issues the proposed work, the contractor provides pricing, the owner reviews the cost, a Change Order is issued, and then the work proceeds.
With a Change Directive, there may not be time to wait.
The work needs to proceed while the final cost is determined afterward.
That's why I jokingly refer to Change Directives as an **“open checkbook.”**
They can be extremely useful when schedule-critical work or unforeseen conditions require an immediate decision — but they also require careful documentation, cost tracking, communication, and review.
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## Chapters
00:00 - What Is a Change Directive?
02:18 - How to Prepare a Change Directive
03:49 - How Change Directive Pricing Works
05:17 - Reviewing and Challenging Costs
07:16 - Resolving Change Directive Disputes
08:01 - When Should You Use a Change Directive?
08:12 - Unforeseen Conditions and Bad Soils
11:54 - Change Directive Best Practices
16:11 - Final Thoughts
#ChangeDirective #ChangeOrders #ConstructionAdministration
What the RFI? — The Construction Administration Podcast
Practical guidance for architects, engineers, consultants, contractors, owners, and project managers navigating construction administration.