Owner Directive Template

Owner Directive Template

Fast-Fact Summary Box

• Template Type: Change Directive & Unilateral Work Order
• Governing Framework: CCDC Change Administration & Ontario Construction Act
• Target Trade: Owners, Consultants & General Contractors
• Primary Operational Risk: Directive authority, cost tracking, schedule impact, and downstream subcontractor notice

Scope Boundaries (Who/What it applies to)

This template governs the unilateral authorization of changes to the work where the Owner and General Contractor have not reached a prior agreement on cost adjustments or schedule extensions. It applies directly to Owners, Prime Consultants, and General Contractors administering commercial, institutional, or industrial projects in Ontario. The scope of this template is restricted to the execution of urgent or disputed work packages where schedule momentum must be prioritised. It establishes the legal boundary for tracking actual labour, equipment, and material costs, ensuring that unilateral directives do not compromise downstream subcontractor payment controls or expose the project to unquantified delay claims.

Mandatory Deliverables & Administrative Windows

• Pre-Commencement Authorization: A fully executed Owner Directive form detailing the precise scope of work, signed by the Owner or Prime Consultant, containing a strict Not-to-Exceed (NTE) financial threshold.
• Daily Labour & Material Logs: Signed daily force account sheets detailing actual hours worked, equipment utilised, and materials installed, submitted to the Consultant for verification within 24 hours of execution.
• Subcontractor Flow-Down Notices: Written notification issued by the General Contractor to all affected downstream subcontractors within 3 business days of receiving the Owner Directive.
• Monthly Progress Claims: Submission of itemised cost breakdowns for completed directive work, integrated into the monthly progress draw cycle.
• Final Reconciliation: Submission of the final cost summary, supporting invoices, and statutory declarations within 10 business days of completing the directed work.

Ontario Regulatory Compliance Notes

All valuations, billing procedures, and disputes arising from the execution of an Owner Directive must strictly comply with the Ontario Construction Act, incorporating the January 1, 2026 amendments under Bill 216 and Bill 60:

• Proper Invoice Deeming: Costs claimed under an Owner Directive and billed within a progress draw are legally deemed "proper invoices" unless the Owner delivers a formal written notice of deficiency to the contractor within 7 days of receipt. Failure to issue this 7-day notice forfeits the Owner's right to dispute the invoice's structure and immediately triggers the statutory 28-day prompt-payment timeline.
• Annual Holdback Release: For multi-year projects, Owners must publish a Notice of Annual Release of Holdback (Form 6) on an electronic construction trade news website within 14 days after each contract anniversary. Payment of the accrued basic holdback must be executed between day 60 and day 74 after publication, provided no liens have been preserved.
• Holdback Refusal Restrictions: The former section 27.1 notice-of-non-payment mechanism, which previously allowed Owners to refuse holdback distribution due to deficient or incomplete work, is repealed. Holdback withholding is strictly limited to formal contract abandonment, termination, or active, preserved lien claims.
• Interim Binding Adjudication: If the parties fail to agree on the final valuation of the directed work, either party has a strict 90-day window following contract completion, abandonment, or termination to initiate interim binding adjudication through ODACC or a qualified private adjudicator.

Form/Sign-off Requirements

• Authorized Representative Signatures: Wet or verified electronic signatures from both the Owner's Designated Representative and the General Contractor's Project Manager are mandatory prior to commencing any physical work.
• Scope Appendix Initialing: The General Contractor and Consultant must initial each page of the detailed scope description and the Not-to-Exceed (NTE) cost schedule.
• Change Order Conversion: A signed acknowledgement that the Owner Directive will be formally converted into a standard Change Order within 15 business days of final cost reconciliation.
• Record Retention: All daily logs, signed directives, and cost records must be retained in the project operating file for a minimum of 7 years post-substantial performance.

Official Verification Sources

• Ontario Construction Act, R.S.O. 1990, c. C.30
• O. Reg. 304/18 (Procedures and Forms)