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Estimating & Biddingaka: NTP

Notice to Proceed

In Plain English

The official written go-ahead from the owner telling the contractor to start work.

Definition

A notice to proceed (NTP) is a written communication from the owner authorizing the contractor to begin work on a project. It establishes the official start date for the contract period and triggers the running of the project schedule. Contractors should not mobilize or incur project costs before receiving a written NTP.

Why It Matters in Bidding

The notice to proceed converts a signed contract into an active obligation by setting the official start date from which the contract time, liquidated damages, and substantial completion deadline are measured, so it directly affects schedule risk pricing in a bid. Estimators and contractors should avoid mobilizing or incurring costs before a written NTP, because work performed beforehand may not be reimbursable and can complicate insurance, bonding, and lien rights.

Example

The contractor received the notice to proceed on April 1, which started the 180-day contract clock and set the substantial completion deadline at September 28, after which liquidated damages would begin to accrue.

Related Terms

ContractBidGeneral ConditionsScope of Work

Frequently Asked Questions

A notice of award informs the winning bidder that the owner intends to award the contract, prompting the contractor to provide bonds, insurance, and a signed agreement. A notice to proceed comes later and authorizes actual work to begin, starting the contract time. Mobilizing on a notice of award alone is risky because the contract may not yet be fully executed.
On most contracts the contract time and the substantial completion deadline run from the date stated in the notice to proceed, not the date the agreement was signed. This matters for liquidated damages and float, so estimators should base schedule assumptions and any escalation pricing on the NTP date rather than the bid or signing date.
Yes. Owners frequently issue a limited NTP authorizing only specific early activities such as submittals, procurement of long-lead items, or site preparation while permits or financing are finalized. A limited NTP lets a contractor protect the schedule on long-lead equipment without committing to full mobilization, but the contractor should bill only for the authorized scope.

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