A construction change directive (CCD) lets the owner order changed work to proceed when the parties have not yet agreed on cost or schedule. Under AIA contracts the standard form is G714. The contractor must perform the work, and the final price is set later, often by unit prices, an agreed lump sum, or actual cost plus markup documented on time and materials tickets.
Why it matters
CCDs keep a job moving when a negotiation would otherwise stop it. But they shift pressure onto the contractor’s cash flow: you are spending money on work with no agreed price. Without disciplined cost tracking you can lose the argument when the price is finally settled.
Worked example
Illustrative: had the owner on Riverside Medical Center disputed the price of the fire damper work from RFI-212 but needed it done before ceilings closed, they could issue a CCD. The GC would set up a dedicated cost code, collect signed daily T&M tickets from the mechanical sub, and later convert the documented cost plus contract markup into a change order.
Common mistakes
- Not setting up a separate cost code, so CCD costs blend into base scope.
- Missing daily signatures on T&M tickets.
- Billing CCD work without checking what the contract allows for interim payment on directed work.
How os.construction handles it
We’re building CCDs as a status in the same change chain, with their own cost code and linked T&M tickets, so the eventual change order is backed by the actual cost record.