Back to Glossary

Notice to Proceed

What is Notice to Proceed?

Notice to Proceed is a formal document authorizing a contractor to begin work on a construction project, establishing the official start date and contract terms.

Description

A Notice to Proceed (NTP) is a formal written document issued by a project owner or their representative to a contractor, officially authorizing the commencement of work on a construction project. This critical document establishes the contractual start date, activates the construction contract, and triggers various time-sensitive obligations and deadlines for both parties. The Notice to Proceed serves as the official green light that transforms a signed contract into an active construction project.

The primary purpose of a Notice to Proceed is to provide clear, documented authorization for work to begin while establishing a definitive start date for contract performance. This document protects both the owner and contractor by creating a formal record of when work was authorized to commence, which is essential for tracking project schedules, calculating completion dates, and managing contractual obligations.

Typical contents of a Notice to Proceed include the project name and location, contract number and date, contractor information, authorized work scope, official start date, contract completion date, and any special conditions or requirements. The document may also reference specific contract provisions, insurance requirements, permit status, and preliminary activities that must be completed before full construction begins.

FAQs

  • Who issues a Notice to Proceed?

    The Notice to Proceed is typically issued by the project owner, owner’s representative, or authorized agent such as an architect or construction manager.

  • When should a Notice to Proceed be issued?

    The NTP should be issued only after all contract preconditions are satisfied, including permits, financing, insurance, bonds, and site availability.

  • What happens if work begins without a Notice to Proceed?

    Working without proper authorization can create legal and financial risks, including potential disputes over payment and contract validity.

  • Can a Notice to Proceed be modified after issuance?

    Yes, but modifications should be documented through formal change orders or contract amendments to avoid confusion and disputes.

  • How does the Notice to Proceed affect project scheduling?

    The NTP date becomes the official project start for calculating all milestones, completion dates, and potential liquidated damages.

  • What should contractors do upon receiving a Notice to Proceed?

    Contractors should verify all conditions, update project schedules, mobilize resources, notify subcontractors, and begin authorized work activities.

  • Is a Notice to Proceed required for all construction projects?

    While not legally required for all projects, it is considered best practice and is typically required for public projects and larger private contracts.

Fun Fact

Fun Fact: The concept of formal work authorization dates back to ancient Roman construction projects, where officials would issue written orders called “mandatum” to authorize public works, establishing legal accountability for project execution.

Links

CSI Code

01 00 00

NAHB Code

1000