Add directive init mechanism

11 files changed, 1118 insertions, 1 deletions

diff --git a/makima/src/bin/makima.rs b/makima/src/bin/makima.rs
index 308d689..9d7f847 100644
--- a/makima/src/bin/makima.rs
+++ b/makima/src/bin/makima.rs
@@ -768,6 +768,11 @@ async fn run_directive(
                 .await?;
             println!("{}", serde_json::to_string(&result.0)?);
         }
+        DirectiveCommand::Start(args) => {
+            let client = ApiClient::new(args.api_url, args.api_key)?;
+            let result = client.directive_start(args.directive_id).await?;
+            println!("{}", serde_json::to_string(&result.0)?);
+        }
     }
 
     Ok(())
diff --git a/makima/src/daemon/api/directive.rs b/makima/src/daemon/api/directive.rs
index 0c8115a..42f6f45 100644
--- a/makima/src/daemon/api/directive.rs
+++ b/makima/src/daemon/api/directive.rs
@@ -51,4 +51,10 @@ impl ApiClient {
         self.put(&format!("/api/v1/directives/{}", directive_id), &req)
             .await
     }
+
+    /// Start a directive (transition from draft to planning).
+    pub async fn directive_start(&self, directive_id: Uuid) -> Result<JsonValue, ApiError> {
+        self.post_empty(&format!("/api/v1/directives/{}/start", directive_id))
+            .await
+    }
 }
diff --git a/makima/src/daemon/cli/mod.rs b/makima/src/daemon/cli/mod.rs
index 9fba216..b07ab5a 100644
--- a/makima/src/daemon/cli/mod.rs
+++ b/makima/src/daemon/cli/mod.rs
@@ -222,6 +222,9 @@ pub enum DirectiveCommand {
 
     /// Update directive status
     UpdateStatus(directive::UpdateStatusArgs),
+
+    /// Start a directive (create planning contract and begin orchestration)
+    Start(DirectiveArgs),
 }
 
 impl Cli {
diff --git a/makima/src/db/repository.rs b/makima/src/db/repository.rs
index 5949079..e072eb8 100644
--- a/makima/src/db/repository.rs
+++ b/makima/src/db/repository.rs
@@ -5183,3 +5183,299 @@ pub async fn list_steps_for_chain(
     .fetch_all(pool)
     .await
 }
+
+// ── Directive orchestration functions ───────────────────────────────────────
+
+/// Update directive status with automatic timestamp management.
+pub async fn update_directive_status(
+    pool: &PgPool,
+    id: Uuid,
+    new_status: &str,
+) -> Result<Option<Directive>, sqlx::Error> {
+    sqlx::query_as::<_, Directive>(
+        r#"
+        UPDATE directives
+        SET status = $2,
+            started_at = CASE WHEN $2 = 'active' AND started_at IS NULL THEN NOW() ELSE started_at END,
+            completed_at = CASE WHEN $2 IN ('completed', 'failed') THEN NOW() ELSE completed_at END,
+            version = version + 1,
+            updated_at = NOW()
+        WHERE id = $1
+        RETURNING *
+        "#,
+    )
+    .bind(id)
+    .bind(new_status)
+    .fetch_optional(pool)
+    .await
+}
+
+/// Set the orchestrator contract ID on a directive.
+pub async fn set_directive_orchestrator_contract(
+    pool: &PgPool,
+    directive_id: Uuid,
+    contract_id: Uuid,
+) -> Result<Option<Directive>, sqlx::Error> {
+    sqlx::query_as::<_, Directive>(
+        r#"
+        UPDATE directives
+        SET orchestrator_contract_id = $2,
+            version = version + 1,
+            updated_at = NOW()
+        WHERE id = $1
+        RETURNING *
+        "#,
+    )
+    .bind(directive_id)
+    .bind(contract_id)
+    .fetch_optional(pool)
+    .await
+}
+
+/// Set the current chain ID on a directive and increment chain_generation_count.
+pub async fn set_directive_current_chain(
+    pool: &PgPool,
+    directive_id: Uuid,
+    chain_id: Uuid,
+) -> Result<Option<Directive>, sqlx::Error> {
+    sqlx::query_as::<_, Directive>(
+        r#"
+        UPDATE directives
+        SET current_chain_id = $2,
+            chain_generation_count = chain_generation_count + 1,
+            version = version + 1,
+            updated_at = NOW()
+        WHERE id = $1
+        RETURNING *
+        "#,
+    )
+    .bind(directive_id)
+    .bind(chain_id)
+    .fetch_optional(pool)
+    .await
+}
+
+/// Create a new directive chain.
+pub async fn create_directive_chain(
+    pool: &PgPool,
+    directive_id: Uuid,
+    name: &str,
+    description: Option<&str>,
+    rationale: Option<&str>,
+    total_steps: i32,
+) -> Result<DirectiveChain, sqlx::Error> {
+    // Get next generation number
+    let next_gen: (i64,) = sqlx::query_as(
+        "SELECT COALESCE(MAX(generation), 0) + 1 FROM directive_chains WHERE directive_id = $1",
+    )
+    .bind(directive_id)
+    .fetch_one(pool)
+    .await?;
+
+    sqlx::query_as::<_, DirectiveChain>(
+        r#"
+        INSERT INTO directive_chains (directive_id, generation, name, description, rationale, total_steps, status)
+        VALUES ($1, $2, $3, $4, $5, $6, 'active')
+        RETURNING *
+        "#,
+    )
+    .bind(directive_id)
+    .bind(next_gen.0 as i32)
+    .bind(name)
+    .bind(description)
+    .bind(rationale)
+    .bind(total_steps)
+    .fetch_one(pool)
+    .await
+}
+
+/// Create a chain step.
+pub async fn create_chain_step(
+    pool: &PgPool,
+    chain_id: Uuid,
+    name: &str,
+    description: Option<&str>,
+    step_type: &str,
+    contract_type: &str,
+    initial_phase: Option<&str>,
+    task_plan: Option<&str>,
+    depends_on: Option<Vec<Uuid>>,
+    order_index: i32,
+) -> Result<ChainStep, sqlx::Error> {
+    sqlx::query_as::<_, ChainStep>(
+        r#"
+        INSERT INTO chain_steps (chain_id, name, description, step_type, contract_type, initial_phase, task_plan, depends_on, order_index, status)
+        VALUES ($1, $2, $3, $4, $5, $6, $7, $8, $9, 'pending')
+        RETURNING *
+        "#,
+    )
+    .bind(chain_id)
+    .bind(name)
+    .bind(description)
+    .bind(step_type)
+    .bind(contract_type)
+    .bind(initial_phase)
+    .bind(task_plan)
+    .bind(depends_on.as_deref())
+    .bind(order_index)
+    .fetch_one(pool)
+    .await
+}
+
+/// Update a chain step's status with automatic timestamp management.
+pub async fn update_step_status(
+    pool: &PgPool,
+    step_id: Uuid,
+    new_status: &str,
+) -> Result<Option<ChainStep>, sqlx::Error> {
+    sqlx::query_as::<_, ChainStep>(
+        r#"
+        UPDATE chain_steps
+        SET status = $2,
+            started_at = CASE WHEN $2 = 'running' AND started_at IS NULL THEN NOW() ELSE started_at END,
+            completed_at = CASE WHEN $2 IN ('passed', 'failed') THEN NOW() ELSE completed_at END
+        WHERE id = $1
+        RETURNING *
+        "#,
+    )
+    .bind(step_id)
+    .bind(new_status)
+    .fetch_optional(pool)
+    .await
+}
+
+/// Link a chain step to a contract and supervisor task.
+pub async fn update_step_contract(
+    pool: &PgPool,
+    step_id: Uuid,
+    contract_id: Uuid,
+    supervisor_task_id: Uuid,
+) -> Result<Option<ChainStep>, sqlx::Error> {
+    sqlx::query_as::<_, ChainStep>(
+        r#"
+        UPDATE chain_steps
+        SET contract_id = $2,
+            supervisor_task_id = $3
+        WHERE id = $1
+        RETURNING *
+        "#,
+    )
+    .bind(step_id)
+    .bind(contract_id)
+    .bind(supervisor_task_id)
+    .fetch_optional(pool)
+    .await
+}
+
+/// Find steps that are ready to execute (pending, with all dependencies passed).
+pub async fn find_ready_steps(
+    pool: &PgPool,
+    chain_id: Uuid,
+) -> Result<Vec<ChainStep>, sqlx::Error> {
+    sqlx::query_as::<_, ChainStep>(
+        r#"
+        SELECT * FROM chain_steps
+        WHERE chain_id = $1
+          AND status = 'pending'
+          AND (
+            depends_on IS NULL
+            OR array_length(depends_on, 1) IS NULL
+            OR NOT EXISTS (
+              SELECT 1 FROM unnest(depends_on) AS dep_id
+              WHERE dep_id NOT IN (
+                SELECT id FROM chain_steps WHERE chain_id = $1 AND status = 'passed'
+              )
+            )
+          )
+        ORDER BY order_index ASC
+        "#,
+    )
+    .bind(chain_id)
+    .fetch_all(pool)
+    .await
+}
+
+/// Get a chain step by its linked contract ID.
+pub async fn get_step_by_contract_id(
+    pool: &PgPool,
+    contract_id: Uuid,
+) -> Result<Option<ChainStep>, sqlx::Error> {
+    sqlx::query_as::<_, ChainStep>(
+        r#"SELECT * FROM chain_steps WHERE contract_id = $1"#,
+    )
+    .bind(contract_id)
+    .fetch_optional(pool)
+    .await
+}
+
+/// Get a directive by its orchestrator contract ID.
+pub async fn get_directive_by_orchestrator_contract(
+    pool: &PgPool,
+    contract_id: Uuid,
+) -> Result<Option<Directive>, sqlx::Error> {
+    sqlx::query_as::<_, Directive>(
+        r#"SELECT * FROM directives WHERE orchestrator_contract_id = $1"#,
+    )
+    .bind(contract_id)
+    .fetch_optional(pool)
+    .await
+}
+
+/// Set directive-related fields on a contract (directive_id, is_directive_orchestrator).
+pub async fn set_contract_directive_fields(
+    pool: &PgPool,
+    contract_id: Uuid,
+    directive_id: Option<Uuid>,
+    is_orchestrator: bool,
+) -> Result<(), sqlx::Error> {
+    sqlx::query(
+        r#"
+        UPDATE contracts
+        SET directive_id = $2,
+            is_directive_orchestrator = $3
+        WHERE id = $1
+        "#,
+    )
+    .bind(contract_id)
+    .bind(directive_id)
+    .bind(is_orchestrator)
+    .execute(pool)
+    .await?;
+    Ok(())
+}
+
+/// Get a directive by ID (no owner scoping, for internal use).
+pub async fn get_directive(
+    pool: &PgPool,
+    id: Uuid,
+) -> Result<Option<Directive>, sqlx::Error> {
+    sqlx::query_as::<_, Directive>(
+        r#"SELECT * FROM directives WHERE id = $1"#,
+    )
+    .bind(id)
+    .fetch_optional(pool)
+    .await
+}
+
+/// Update chain status.
+pub async fn update_chain_status(
+    pool: &PgPool,
+    chain_id: Uuid,
+    new_status: &str,
+) -> Result<Option<DirectiveChain>, sqlx::Error> {
+    sqlx::query_as::<_, DirectiveChain>(
+        r#"
+        UPDATE directive_chains
+        SET status = $2,
+            completed_at = CASE WHEN $2 IN ('completed', 'failed') THEN NOW() ELSE completed_at END,
+            version = version + 1,
+            updated_at = NOW()
+        WHERE id = $1
+        RETURNING *
+        "#,
+    )
+    .bind(chain_id)
+    .bind(new_status)
+    .fetch_optional(pool)
+    .await
+}
diff --git a/makima/src/lib.rs b/makima/src/lib.rs
index 8d3db58..3bc460b 100644
--- a/makima/src/lib.rs
+++ b/makima/src/lib.rs
@@ -3,5 +3,6 @@ pub mod daemon;
 pub mod db;
 pub mod listen;
 pub mod llm;
+pub mod orchestration;
 pub mod server;
 pub mod tts;
diff --git a/makima/src/orchestration/directive.rs b/makima/src/orchestration/directive.rs
new file mode 100644
index 0000000..d17deeb
--- /dev/null
+++ b/makima/src/orchestration/directive.rs
@@ -0,0 +1,736 @@
+//! Directive orchestration — init, planning completion, chain advancement.
+
+use serde::Deserialize;
+use sqlx::PgPool;
+use uuid::Uuid;
+
+use crate::db::models::{
+    CreateContractRequest, CreateTaskRequest, Directive, Task, UpdateContractRequest,
+};
+use crate::db::repository;
+use crate::server::state::SharedState;
+
+/// A single step in the chain plan produced by the planning supervisor.
+#[derive(Debug, Deserialize)]
+struct ChainPlanStep {
+    name: String,
+    description: String,
+    task_plan: String,
+    #[serde(default)]
+    depends_on: Vec<String>, // names of steps this depends on
+}
+
+/// Wrapper for the plan JSON written by the planning supervisor.
+#[derive(Debug, Deserialize)]
+struct ChainPlan {
+    steps: Vec<ChainPlanStep>,
+}
+
+/// Initialize a directive: create a planning contract and transition to "planning".
+pub async fn init_directive(
+    pool: &PgPool,
+    _state: &SharedState,
+    owner_id: Uuid,
+    directive_id: Uuid,
+) -> Result<Directive, String> {
+    // 1. Get directive, verify status
+    let directive = repository::get_directive_for_owner(pool, directive_id, owner_id)
+        .await
+        .map_err(|e| format!("Failed to get directive: {}", e))?
+        .ok_or("Directive not found")?;
+
+    if directive.status != "draft" {
+        return Err(format!(
+            "Directive must be in 'draft' status to start, current status: '{}'",
+            directive.status
+        ));
+    }
+
+    // 2. Create planning contract
+    let contract = repository::create_contract_for_owner(
+        pool,
+        owner_id,
+        CreateContractRequest {
+            name: format!("{} - Planning", directive.title),
+            description: Some(format!(
+                "Planning contract for directive: {}",
+                directive.title
+            )),
+            contract_type: Some("simple".to_string()),
+            template_id: None,
+            initial_phase: Some("plan".to_string()),
+            autonomous_loop: Some(true),
+            phase_guard: None,
+            local_only: Some(true),
+            auto_merge_local: None,
+        },
+    )
+    .await
+    .map_err(|e| format!("Failed to create planning contract: {}", e))?;
+
+    // 3. Mark contract as directive orchestrator
+    repository::set_contract_directive_fields(pool, contract.id, Some(directive_id), true)
+        .await
+        .map_err(|e| format!("Failed to set contract directive fields: {}", e))?;
+
+    // 4. Build planning prompt
+    let planning_prompt = build_planning_prompt(&directive);
+
+    // 5. Create supervisor task
+    let supervisor_task = repository::create_task_for_owner(
+        pool,
+        owner_id,
+        CreateTaskRequest {
+            contract_id: Some(contract.id),
+            name: format!("{} - Planner", directive.title),
+            description: Some("Decompose directive goal into executable chain steps".to_string()),
+            plan: planning_prompt,
+            parent_task_id: None,
+            is_supervisor: true,
+            priority: 10,
+            repository_url: directive.repository_url.clone(),
+            base_branch: directive.base_branch.clone(),
+            target_branch: None,
+            merge_mode: None,
+            target_repo_path: directive.local_path.clone(),
+            completion_action: None,
+            continue_from_task_id: None,
+            copy_files: None,
+            checkpoint_sha: None,
+            branched_from_task_id: None,
+            conversation_history: None,
+            supervisor_worktree_task_id: None,
+        },
+    )
+    .await
+    .map_err(|e| format!("Failed to create supervisor task: {}", e))?;
+
+    // 6. Link supervisor to contract
+    repository::update_contract_for_owner(
+        pool,
+        contract.id,
+        owner_id,
+        UpdateContractRequest {
+            supervisor_task_id: Some(supervisor_task.id),
+            ..Default::default()
+        },
+    )
+    .await
+    .map_err(|e| match e {
+        crate::db::repository::RepositoryError::Database(e) => {
+            format!("Failed to link supervisor to contract: {}", e)
+        }
+        other => format!("Failed to link supervisor to contract: {:?}", other),
+    })?;
+
+    // 7. Set orchestrator_contract_id on directive
+    repository::set_directive_orchestrator_contract(pool, directive_id, contract.id)
+        .await
+        .map_err(|e| format!("Failed to set orchestrator contract: {}", e))?;
+
+    // 8. Transition directive to "planning"
+    let updated = repository::update_directive_status(pool, directive_id, "planning")
+        .await
+        .map_err(|e| format!("Failed to update directive status: {}", e))?
+        .ok_or("Directive not found after status update")?;
+
+    // 9. Copy repo config to contract if repository_url is set
+    if let Some(ref repo_url) = directive.repository_url {
+        let _ = repository::add_remote_repository(
+            pool,
+            contract.id,
+            "directive-repo",
+            repo_url,
+            true,
+        )
+        .await;
+    } else if let Some(ref local_path) = directive.local_path {
+        let _ = repository::add_local_repository(
+            pool,
+            contract.id,
+            "directive-repo",
+            local_path,
+            true,
+        )
+        .await;
+    }
+
+    tracing::info!(
+        directive_id = %directive_id,
+        contract_id = %contract.id,
+        task_id = %supervisor_task.id,
+        "Directive started: planning contract created"
+    );
+
+    Ok(updated)
+}
+
+/// Called when any task completes — checks if it's directive-related and advances.
+pub async fn on_task_completed(
+    pool: &PgPool,
+    state: &SharedState,
+    task: &Task,
+    owner_id: Uuid,
+) -> Result<(), String> {
+    let Some(contract_id) = task.contract_id else {
+        return Ok(());
+    };
+
+    let contract = repository::get_contract_for_owner(pool, contract_id, owner_id)
+        .await
+        .map_err(|e| format!("Failed to get contract: {}", e))?;
+
+    let Some(contract) = contract else {
+        return Ok(());
+    };
+
+    if contract.is_directive_orchestrator {
+        // This is a planning contract completion
+        let directive =
+            repository::get_directive_by_orchestrator_contract(pool, contract_id)
+                .await
+                .map_err(|e| format!("Failed to get directive by orchestrator: {}", e))?;
+
+        if let Some(directive) = directive {
+            on_planning_completed(pool, state, &directive, task, owner_id).await?;
+        }
+    } else if contract.directive_id.is_some() {
+        // This is a step contract completion
+        on_step_completed(pool, state, &contract, task, owner_id).await?;
+    }
+
+    Ok(())
+}
+
+/// Handle planning task completion: parse chain plan, create steps, advance.
+async fn on_planning_completed(
+    pool: &PgPool,
+    state: &SharedState,
+    directive: &Directive,
+    task: &Task,
+    owner_id: Uuid,
+) -> Result<(), String> {
+    // If task failed, fail the directive
+    if task.status == "failed" {
+        tracing::warn!(
+            directive_id = %directive.id,
+            task_id = %task.id,
+            "Planning task failed, marking directive as failed"
+        );
+        repository::update_directive_status(pool, directive.id, "failed")
+            .await
+            .map_err(|e| format!("Failed to update directive status: {}", e))?;
+        return Ok(());
+    }
+
+    // Only process when the supervisor task itself is done
+    if task.status != "done" || !task.is_supervisor {
+        return Ok(());
+    }
+
+    let Some(contract_id) = task.contract_id else {
+        return Ok(());
+    };
+
+    // Get contract files to find the chain plan
+    let files = repository::list_files_in_contract(pool, contract_id, owner_id)
+        .await
+        .map_err(|e| format!("Failed to list contract files: {}", e))?;
+
+    // Find the chain plan file
+    let plan_file = files.iter().find(|f| {
+        let name_lower = f.name.to_lowercase();
+        name_lower.contains("chain") || name_lower.contains("plan")
+    });
+
+    let plan_file = plan_file.or_else(|| files.first());
+
+    let Some(plan_file) = plan_file else {
+        tracing::warn!(
+            directive_id = %directive.id,
+            "No plan file found in planning contract, marking directive failed"
+        );
+        repository::update_directive_status(pool, directive.id, "failed")
+            .await
+            .map_err(|e| format!("Failed to update directive status: {}", e))?;
+        return Ok(());
+    };
+
+    // Read the full file to get the body content
+    let full_file = repository::get_file(pool, plan_file.id)
+        .await
+        .map_err(|e| format!("Failed to get plan file: {}", e))?
+        .ok_or("Plan file not found")?;
+
+    // Extract JSON from the file body elements
+    let plan_json = extract_plan_json(&full_file.body);
+
+    let Some(plan_json) = plan_json else {
+        tracing::warn!(
+            directive_id = %directive.id,
+            "Could not extract chain plan JSON from file body, marking directive failed"
+        );
+        repository::update_directive_status(pool, directive.id, "failed")
+            .await
+            .map_err(|e| format!("Failed to update directive status: {}", e))?;
+        return Ok(());
+    };
+
+    let chain_plan: ChainPlan = serde_json::from_str(&plan_json).map_err(|e| {
+        format!("Failed to parse chain plan JSON: {}", e)
+    })?;
+
+    if chain_plan.steps.is_empty() {
+        tracing::warn!(
+            directive_id = %directive.id,
+            "Chain plan has no steps, marking directive failed"
+        );
+        repository::update_directive_status(pool, directive.id, "failed")
+            .await
+            .map_err(|e| format!("Failed to update directive status: {}", e))?;
+        return Ok(());
+    }
+
+    // Create chain
+    let chain = repository::create_directive_chain(
+        pool,
+        directive.id,
+        &format!("{} - Chain", directive.title),
+        Some("Auto-generated from planning"),
+        None,
+        chain_plan.steps.len() as i32,
+    )
+    .await
+    .map_err(|e| format!("Failed to create directive chain: {}", e))?;
+
+    // Create steps (two passes: first create all, then resolve dependencies)
+    let mut step_ids: Vec<(String, Uuid)> = Vec::new();
+
+    for (i, plan_step) in chain_plan.steps.iter().enumerate() {
+        let step = repository::create_chain_step(
+            pool,
+            chain.id,
+            &plan_step.name,
+            Some(&plan_step.description),
+            "task",
+            "simple",
+            Some("plan"),
+            Some(&plan_step.task_plan),
+            None, // dependencies set in second pass
+            i as i32,
+        )
+        .await
+        .map_err(|e| format!("Failed to create chain step: {}", e))?;
+
+        step_ids.push((plan_step.name.clone(), step.id));
+    }
+
+    // Second pass: resolve name-based dependencies to UUIDs and update
+    for (i, plan_step) in chain_plan.steps.iter().enumerate() {
+        if plan_step.depends_on.is_empty() {
+            continue;
+        }
+
+        let dep_uuids: Vec<Uuid> = plan_step
+            .depends_on
+            .iter()
+            .filter_map(|dep_name| {
+                step_ids
+                    .iter()
+                    .find(|(name, _)| name == dep_name)
+                    .map(|(_, id)| *id)
+            })
+            .collect();
+
+        if !dep_uuids.is_empty() {
+            let step_id = step_ids[i].1;
+            sqlx::query(
+                "UPDATE chain_steps SET depends_on = $2 WHERE id = $1",
+            )
+            .bind(step_id)
+            .bind(&dep_uuids)
+            .execute(pool)
+            .await
+            .map_err(|e| format!("Failed to update step dependencies: {}", e))?;
+        }
+    }
+
+    // Set current chain on directive
+    repository::set_directive_current_chain(pool, directive.id, chain.id)
+        .await
+        .map_err(|e| format!("Failed to set current chain: {}", e))?;
+
+    // Transition directive to active
+    let updated_directive = repository::update_directive_status(pool, directive.id, "active")
+        .await
+        .map_err(|e| format!("Failed to update directive status: {}", e))?
+        .ok_or("Directive not found after status update")?;
+
+    tracing::info!(
+        directive_id = %directive.id,
+        chain_id = %chain.id,
+        step_count = chain_plan.steps.len(),
+        "Chain plan created, advancing chain"
+    );
+
+    // Advance chain to dispatch ready steps
+    advance_chain(pool, state, &updated_directive, owner_id).await
+}
+
+/// Handle a step contract task completion.
+async fn on_step_completed(
+    pool: &PgPool,
+    state: &SharedState,
+    contract: &crate::db::models::Contract,
+    task: &Task,
+    owner_id: Uuid,
+) -> Result<(), String> {
+    // Only process supervisor task completions
+    if !task.is_supervisor {
+        return Ok(());
+    }
+
+    let Some(directive_id) = contract.directive_id else {
+        return Ok(());
+    };
+
+    // Find the step linked to this contract
+    let step = repository::get_step_by_contract_id(pool, contract.id)
+        .await
+        .map_err(|e| format!("Failed to get step by contract: {}", e))?;
+
+    let Some(step) = step else {
+        return Ok(());
+    };
+
+    // Update step status based on task outcome
+    let new_status = if task.status == "done" {
+        "passed"
+    } else {
+        "failed"
+    };
+
+    repository::update_step_status(pool, step.id, new_status)
+        .await
+        .map_err(|e| format!("Failed to update step status: {}", e))?;
+
+    tracing::info!(
+        directive_id = %directive_id,
+        step_id = %step.id,
+        step_name = %step.name,
+        new_status = new_status,
+        "Step completed"
+    );
+
+    // Get the directive and advance
+    let directive = repository::get_directive(pool, directive_id)
+        .await
+        .map_err(|e| format!("Failed to get directive: {}", e))?
+        .ok_or("Directive not found")?;
+
+    advance_chain(pool, state, &directive, owner_id).await
+}
+
+/// Check chain progress and dispatch ready steps or mark directive complete.
+async fn advance_chain(
+    pool: &PgPool,
+    _state: &SharedState,
+    directive: &Directive,
+    owner_id: Uuid,
+) -> Result<(), String> {
+    let Some(chain_id) = directive.current_chain_id else {
+        return Ok(());
+    };
+
+    let steps = repository::list_steps_for_chain(pool, chain_id)
+        .await
+        .map_err(|e| format!("Failed to list steps: {}", e))?;
+
+    // Check if all steps passed
+    let all_passed = steps.iter().all(|s| s.status == "passed");
+    if all_passed && !steps.is_empty() {
+        repository::update_chain_status(pool, chain_id, "completed")
+            .await
+            .map_err(|e| format!("Failed to update chain status: {}", e))?;
+        repository::update_directive_status(pool, directive.id, "completed")
+            .await
+            .map_err(|e| format!("Failed to update directive status: {}", e))?;
+        tracing::info!(directive_id = %directive.id, "Directive completed: all steps passed");
+        return Ok(());
+    }
+
+    // Check if any step failed
+    let any_failed = steps.iter().any(|s| s.status == "failed");
+    if any_failed {
+        repository::update_chain_status(pool, chain_id, "failed")
+            .await
+            .map_err(|e| format!("Failed to update chain status: {}", e))?;
+        repository::update_directive_status(pool, directive.id, "failed")
+            .await
+            .map_err(|e| format!("Failed to update directive status: {}", e))?;
+        tracing::info!(directive_id = %directive.id, "Directive failed: step failure detected");
+        return Ok(());
+    }
+
+    // Find and dispatch ready steps
+    let ready_steps = repository::find_ready_steps(pool, chain_id)
+        .await
+        .map_err(|e| format!("Failed to find ready steps: {}", e))?;
+
+    for step in ready_steps {
+        if let Err(e) = dispatch_step(pool, directive, &step, owner_id).await {
+            tracing::error!(
+                step_id = %step.id,
+                step_name = %step.name,
+                error = %e,
+                "Failed to dispatch step"
+            );
+        }
+    }
+
+    Ok(())
+}
+
+/// Dispatch a single chain step as a new contract with supervisor.
+async fn dispatch_step(
+    pool: &PgPool,
+    directive: &Directive,
+    step: &crate::db::models::ChainStep,
+    owner_id: Uuid,
+) -> Result<(), String> {
+    // Mark step as running
+    repository::update_step_status(pool, step.id, "running")
+        .await
+        .map_err(|e| format!("Failed to update step status: {}", e))?;
+
+    // Create contract for this step
+    let contract = repository::create_contract_for_owner(
+        pool,
+        owner_id,
+        CreateContractRequest {
+            name: step.name.clone(),
+            description: step.description.clone(),
+            contract_type: Some(step.contract_type.clone()),
+            template_id: None,
+            initial_phase: step.initial_phase.clone(),
+            autonomous_loop: Some(true),
+            phase_guard: None,
+            local_only: Some(true),
+            auto_merge_local: None,
+        },
+    )
+    .await
+    .map_err(|e| format!("Failed to create step contract: {}", e))?;
+
+    // Set directive_id on contract
+    repository::set_contract_directive_fields(pool, contract.id, Some(directive.id), false)
+        .await
+        .map_err(|e| format!("Failed to set contract directive fields: {}", e))?;
+
+    // Build the task plan
+    let task_plan = step
+        .task_plan
+        .clone()
+        .unwrap_or_else(|| format!("Execute step: {}", step.name));
+
+    // Create supervisor task
+    let supervisor_task = repository::create_task_for_owner(
+        pool,
+        owner_id,
+        CreateTaskRequest {
+            contract_id: Some(contract.id),
+            name: format!("{} Supervisor", step.name),
+            description: step.description.clone(),
+            plan: task_plan,
+            parent_task_id: None,
+            is_supervisor: true,
+            priority: 5,
+            repository_url: directive.repository_url.clone(),
+            base_branch: directive.base_branch.clone(),
+            target_branch: None,
+            merge_mode: None,
+            target_repo_path: directive.local_path.clone(),
+            completion_action: None,
+            continue_from_task_id: None,
+            copy_files: None,
+            checkpoint_sha: None,
+            branched_from_task_id: None,
+            conversation_history: None,
+            supervisor_worktree_task_id: None,
+        },
+    )
+    .await
+    .map_err(|e| format!("Failed to create step supervisor task: {}", e))?;
+
+    // Link supervisor to contract
+    repository::update_contract_for_owner(
+        pool,
+        contract.id,
+        owner_id,
+        UpdateContractRequest {
+            supervisor_task_id: Some(supervisor_task.id),
+            ..Default::default()
+        },
+    )
+    .await
+    .map_err(|e| match e {
+        crate::db::repository::RepositoryError::Database(e) => {
+            format!("Failed to link supervisor to step contract: {}", e)
+        }
+        other => format!("Failed to link supervisor to step contract: {:?}", other),
+    })?;
+
+    // Link step to contract/task
+    repository::update_step_contract(pool, step.id, contract.id, supervisor_task.id)
+        .await
+        .map_err(|e| format!("Failed to update step contract link: {}", e))?;
+
+    // Copy repo config from directive to step contract
+    if let Some(ref repo_url) = directive.repository_url {
+        let _ = repository::add_remote_repository(
+            pool,
+            contract.id,
+            "directive-repo",
+            repo_url,
+            true,
+        )
+        .await;
+    } else if let Some(ref local_path) = directive.local_path {
+        let _ = repository::add_local_repository(
+            pool,
+            contract.id,
+            "directive-repo",
+            local_path,
+            true,
+        )
+        .await;
+    }
+
+    tracing::info!(
+        directive_id = %directive.id,
+        step_id = %step.id,
+        step_name = %step.name,
+        contract_id = %contract.id,
+        task_id = %supervisor_task.id,
+        "Step dispatched"
+    );
+
+    Ok(())
+}
+
+/// Build the planning supervisor prompt from a directive.
+fn build_planning_prompt(directive: &Directive) -> String {
+    format!(
+        r#"You are planning the execution of a directive.
+
+DIRECTIVE: {}
+GOAL: {}
+REQUIREMENTS: {}
+ACCEPTANCE CRITERIA: {}
+CONSTRAINTS: {}
+
+Your job is to decompose this goal into a sequence of executable steps.
+Each step will become a separate contract with its own supervisor.
+
+Write a JSON plan to a contract file named "chain-plan" using:
+  makima contract create-file "chain-plan" < plan.json
+
+The JSON format:
+{{
+  "steps": [
+    {{
+      "name": "Step name",
+      "description": "What this step accomplishes",
+      "task_plan": "Detailed instructions for the step's supervisor",
+      "depends_on": []
+    }}
+  ]
+}}
+
+Rules:
+- Steps with no dependencies (empty depends_on array) will run in parallel.
+- Steps that depend on other steps will wait until those complete.
+- The depends_on array contains names of steps this step depends on.
+- Each step should be a self-contained unit of work.
+- Be specific in task_plan — include file paths, function names, and acceptance criteria where possible.
+- Keep the number of steps reasonable (3-10 typically).
+
+After writing the plan file, mark the contract as complete using:
+  makima supervisor complete"#,
+        directive.title,
+        directive.goal,
+        serde_json::to_string_pretty(&directive.requirements).unwrap_or_default(),
+        serde_json::to_string_pretty(&directive.acceptance_criteria).unwrap_or_default(),
+        serde_json::to_string_pretty(&directive.constraints).unwrap_or_default(),
+    )
+}
+
+/// Extract JSON from file body elements.
+fn extract_plan_json(body: &[crate::db::models::BodyElement]) -> Option<String> {
+    use crate::db::models::BodyElement;
+
+    for element in body {
+        match element {
+            BodyElement::Code { content, .. } => {
+                // Try to parse as JSON
+                let trimmed = content.trim();
+                if trimmed.starts_with('{') || trimmed.starts_with('[') {
+                    if serde_json::from_str::<serde_json::Value>(trimmed).is_ok() {
+                        return Some(trimmed.to_string());
+                    }
+                }
+            }
+            BodyElement::Paragraph { text } => {
+                let trimmed = text.trim();
+                if trimmed.starts_with('{') || trimmed.starts_with('[') {
+                    if serde_json::from_str::<serde_json::Value>(trimmed).is_ok() {
+                        return Some(trimmed.to_string());
+                    }
+                }
+            }
+            BodyElement::Markdown { content } => {
+                // Try to find JSON in markdown content
+                let trimmed = content.trim();
+                if trimmed.starts_with('{') || trimmed.starts_with('[') {
+                    if serde_json::from_str::<serde_json::Value>(trimmed).is_ok() {
+                        return Some(trimmed.to_string());
+                    }
+                }
+                // Try to find JSON in code blocks within markdown
+                if let Some(json_start) = trimmed.find("```json") {
+                    let after = &trimmed[json_start + 7..];
+                    if let Some(json_end) = after.find("```") {
+                        let json_str = after[..json_end].trim();
+                        if serde_json::from_str::<serde_json::Value>(json_str).is_ok() {
+                            return Some(json_str.to_string());
+                        }
+                    }
+                }
+            }
+            _ => {}
+        }
+    }
+
+    // Fallback: concatenate all text content and try to find JSON
+    let all_text: String = body
+        .iter()
+        .map(|el| match el {
+            BodyElement::Code { content, .. } => content.clone(),
+            BodyElement::Paragraph { text } => text.clone(),
+            BodyElement::Markdown { content } => content.clone(),
+            _ => String::new(),
+        })
+        .collect::<Vec<_>>()
+        .join("\n");
+
+    let trimmed = all_text.trim();
+    if let Some(start) = trimmed.find('{') {
+        // Find matching closing brace
+        let substr = &trimmed[start..];
+        if serde_json::from_str::<serde_json::Value>(substr).is_ok() {
+            return Some(substr.to_string());
+        }
+    }
+
+    None
+}
diff --git a/makima/src/orchestration/mod.rs b/makima/src/orchestration/mod.rs
new file mode 100644
index 0000000..e7ffb70
--- /dev/null
+++ b/makima/src/orchestration/mod.rs
@@ -0,0 +1 @@
+pub mod directive;
diff --git a/makima/src/server/handlers/directives.rs b/makima/src/server/handlers/directives.rs
index a74f8ff..560151b 100644
--- a/makima/src/server/handlers/directives.rs
+++ b/makima/src/server/handlers/directives.rs
@@ -13,6 +13,7 @@ use crate::db::models::{
     DirectiveListResponse, DirectiveWithChains, UpdateDirectiveRequest,
 };
 use crate::db::repository::{self, RepositoryError};
+use crate::orchestration;
 use crate::server::auth::Authenticated;
 use crate::server::messages::ApiError;
 use crate::server::state::SharedState;
@@ -438,3 +439,60 @@ pub async fn get_chain(
 
     Json(ChainWithSteps { chain, steps }).into_response()
 }
+
+/// Start a directive: create a planning contract and begin orchestration.
+#[utoipa::path(
+    post,
+    path = "/api/v1/directives/{id}/start",
+    params(
+        ("id" = Uuid, Path, description = "Directive ID")
+    ),
+    responses(
+        (status = 200, description = "Directive started", body = Directive),
+        (status = 400, description = "Directive not in draft status", body = ApiError),
+        (status = 401, description = "Unauthorized", body = ApiError),
+        (status = 404, description = "Directive not found", body = ApiError),
+        (status = 503, description = "Database not configured", body = ApiError),
+        (status = 500, description = "Internal server error", body = ApiError),
+    ),
+    security(
+        ("bearer_auth" = []),
+        ("api_key" = [])
+    ),
+    tag = "Directives"
+)]
+pub async fn start_directive(
+    State(state): State<SharedState>,
+    Authenticated(auth): Authenticated,
+    Path(id): Path<Uuid>,
+) -> impl IntoResponse {
+    let Some(ref pool) = state.db_pool else {
+        return (
+            StatusCode::SERVICE_UNAVAILABLE,
+            Json(ApiError::new("DB_UNAVAILABLE", "Database not configured")),
+        )
+            .into_response();
+    };
+
+    match orchestration::directive::init_directive(pool, &state, auth.owner_id, id).await {
+        Ok(directive) => Json(directive).into_response(),
+        Err(e) if e.contains("not found") => (
+            StatusCode::NOT_FOUND,
+            Json(ApiError::new("NOT_FOUND", e)),
+        )
+            .into_response(),
+        Err(e) if e.contains("must be in 'draft'") => (
+            StatusCode::BAD_REQUEST,
+            Json(ApiError::new("INVALID_STATUS", e)),
+        )
+            .into_response(),
+        Err(e) => {
+            tracing::error!("Failed to start directive {}: {}", id, e);
+            (
+                StatusCode::INTERNAL_SERVER_ERROR,
+                Json(ApiError::new("START_FAILED", e)),
+            )
+                .into_response()
+        }
+    }
+}
diff --git a/makima/src/server/handlers/mesh_daemon.rs b/makima/src/server/handlers/mesh_daemon.rs
index beb4c15..767d059 100644
--- a/makima/src/server/handlers/mesh_daemon.rs
+++ b/makima/src/server/handlers/mesh_daemon.rs
@@ -1303,7 +1303,16 @@ async fn handle_daemon_connection(socket: WebSocket, state: SharedState, auth_re
                                                     }),
                                                 ).await;
 
-                                                // TODO: Directive engine integration (removed for reimplementation)
+                                                // Directive engine integration
+                                                if let Err(e) = crate::orchestration::directive::on_task_completed(
+                                                    &pool, &state, &updated_task, owner_id,
+                                                ).await {
+                                                    tracing::warn!(
+                                                        task_id = %task_id,
+                                                        error = %e,
+                                                        "Failed to process directive task completion"
+                                                    );
+                                                }
                                             }
                                             Ok(None) => {
                                                 tracing::warn!(
diff --git a/makima/src/server/mod.rs b/makima/src/server/mod.rs
index a429612..1a59e12 100644
--- a/makima/src/server/mod.rs
+++ b/makima/src/server/mod.rs
@@ -181,6 +181,7 @@ pub fn make_router(state: SharedState) -> Router {
                 .put(directives::update_directive)
                 .delete(directives::delete_directive),
         )
+        .route("/directives/{id}/start", post(directives::start_directive))
         .route("/directives/{id}/chains", get(directives::list_chains))
         .route("/directives/{id}/chains/{chain_id}", get(directives::get_chain))
         // Contract supervisor resume endpoints
diff --git a/makima/src/server/openapi.rs b/makima/src/server/openapi.rs
index 0e6912a..96c19e0 100644
--- a/makima/src/server/openapi.rs
+++ b/makima/src/server/openapi.rs
@@ -111,6 +111,7 @@ use crate::server::messages::{ApiError, AudioEncoding, StartMessage, StopMessage
         directives::create_directive,
         directives::update_directive,
         directives::delete_directive,
+        directives::start_directive,
         directives::list_chains,
         directives::get_chain,
     ),