Notice to Proceed (NTP)
The owner's written go-ahead that starts the contractor's clock.
Quick Answer
A notice to proceed (NTP) is the owner's formal written authorization for the contractor to begin work under a signed contract. It usually starts the contract time, so completion dates and liquidated damages are counted from it. Owners issue it once bonds, insurance, permits, and site access are in place.
The Full Picture
The notice to proceed exists because signing a contract and being ready to build are not the same moment. Between award and mobilization, the owner may still be securing financing, permits, or land, and the contractor must post bonds and insurance. The NTP separates those steps so neither side starts the clock before the job can actually begin.
Mechanically, the contract ties time to the NTP. The federal clause at FAR 52.211-10, for example, requires the contractor to begin work within a set number of calendar days after receiving the notice to proceed and to finish within the stated performance period. Private contracts using AIA or ConsensusDocs forms typically let the parties set the commencement date by reference to a notice to proceed as well.
Owners sometimes issue a limited notice to proceed (LNTP). An LNTP authorizes a defined slice of work, such as ordering long-lead equipment, mobilizing, or performing early sitework, often with a cap on the dollars the owner will pay if the full project does not go forward. It lets critical-path procurement start while the rest of the contract is finalized.
In preconstruction, the NTP date drives the schedule and the escalation exposure in the bid. If the bid assumes a spring NTP and the owner issues it in the fall, pricing, weather assumptions, and subcontractor availability can all shift. Precon teams often state an assumed NTP date and a price validity period in their proposals for exactly this reason.
Real Examples
Common Misconceptions
People assume: The notice of award and the notice to proceed are the same thing.
Actually: The notice of award tells the bidder it won and should execute the contract and furnish bonds. The notice to proceed comes later and authorizes the work to start, usually starting the contract time.
People assume: Signing the contract starts the schedule.
Actually: On many contracts the time for completion runs from the NTP date, not the signature date. Starting work before an NTP can leave the contractor unpaid or uninsured for that work.
Frequently Asked Questions
What is the purpose of a notice to proceed?
It formally authorizes the contractor to start work and fixes the date from which contract time is measured. That date controls the completion deadline, the start of any liquidated damages exposure, and often the start of the payment cycle.
What is a limited notice to proceed?
An LNTP authorizes only part of the work, such as procurement of long-lead materials or early sitework, usually with a cap on what the owner will pay. It is used to protect the schedule while the full contract or financing is being finalized.
What usually has to happen before an NTP is issued?
Typically the contract is executed, performance and payment bonds and insurance certificates are delivered, and the owner has the permits, financing, and site access needed for work to begin. Requirements depend on the contract.
What happens if the owner delays the notice to proceed?
A long delay can expose the contractor to escalation and resource conflicts. Depending on the contract, the contractor may be entitled to a price or time adjustment, which is why many bids state an assumed NTP date and price validity period.
How does the NTP relate to the baseline schedule?
The baseline schedule is normally built from the NTP date forward. Once the NTP is issued, the start milestone is fixed and progress is measured against that baseline.