In Plain English
Quick Answer
The official written notice from the owner telling the contractor to start construction.
Definition
Definition
A Notice to Proceed is a formal written authorization from the project owner to the contractor instructing them to begin work on the contract. The NTP typically establishes the official project start date from which contract milestones and the substantial completion deadline are calculated. On public projects, a contractor cannot begin work and is not entitled to compensation until the NTP is issued, even if the contract has already been executed.
Context
Why It Matters in Bidding
The NTP sets the clock that governs the entire schedule baseline, so estimators tie contract time, liquidated-damages exposure, and substantial-completion deadlines to its issuance date rather than the contract signing date. A delayed NTP can compress the planned schedule or push work into adverse weather, and contractors should clarify in the bid whether time runs from NTP or from a fixed calendar date. On public work, performing before the NTP is issued is usually uncompensated and may even be a contract violation.
Example
Example
A site contractor mobilizes crews the Monday after receiving the owner's Notice to Proceed, because the 180-day contract clock and the liquidated-damages deadline both start counting from that NTP date, not from the day the contract was signed three weeks earlier.
See Also
Related Terms
FAQ
Questions Contractors Ask
What is the difference between contract award and Notice to Proceed?
Award is the owner's decision to give the contract to a bidder, and execution is signing it. The NTP comes afterward and is the actual authorization to start physical work. There can be a gap of days or weeks while bonds, insurance, and permits are finalized, during which the contractor cannot legally begin.
Can a contractor start work before receiving the NTP?
Generally no, especially on public projects. Work performed before the NTP is issued is typically not compensable and may breach the contract. Even if the agreement is signed, the contractor should wait for written authorization, because the NTP also establishes the start date used to measure contract time and milestones.
Does the contract schedule start at NTP?
Usually yes. Most contracts calculate the number of calendar or working days, milestone dates, and the substantial-completion deadline from the NTP date. Estimators should confirm whether time is measured from NTP or a fixed date, since a late NTP can shorten available time and increase liquidated-damages risk.
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