A CCD exists for the moments a change order process is too slow for the job. The owner or architect directs the work to proceed now, with cost and schedule impact to be determined and agreed afterward — usually converting into a formal change order once the numbers are worked out.
The risk sits with whoever performs the work under a CCD: they're obligated to proceed on a directive that doesn't yet have an agreed price, which means the pricing conversation happens after the cost is already locked in, not before.
Example
An owner needs a structural change made immediately to keep a schedule from slipping further, before the GC and structural engineer have finished pricing it. The architect issues a CCD directing the GC to proceed; the price gets negotiated over the following two weeks and converts into a standard change order.
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