What does a “notice to proceed” document signify?

A “notice to proceed” document is a crucial element in the construction and contracting process as it officially authorizes a contractor to begin work on a project. This document is issued by the project owner or the authorized representative once all preconditions such as obtaining necessary permits, finalizing contracts, and addressing any preliminary issues are resolved.

The significance of this notice lies in its role in managing the project's timeline and enforcing contractual obligations. When received, the contractor can mobilize resources, start site preparations, and commence actual construction activities with the assurance that they are acting within the bounds of the contract. It sets a formal start date for the contractor, which can impact scheduling, project management, and compliance with deadlines outlined in the contract.

This documentation is not about altering timelines, requesting additional funding, or serving as a payment receipt, but rather marks the official commencement of work, establishing a clear point of reference for project progress and accountability.