Category: Contracts & management
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
A notice to proceed is a formal notice from the owner or consultant instructing the contractor to start on a set date, from which the contract period usually runs. It follows contract signing and the required guarantees, before or with site handover.
Why it matters on a project
Its date fixes the contractual completion date and the basis for damages and extensions. Issuing it before the site is ready puts the delay on the owner.
Common mistake
Starting work before the formal notice to proceed, so the parties disagree on when the period began.
Frequently asked questions
Can the notice to proceed come late after signing?
Yes, and the contract sets a maximum; a long delay can give the contractor a right to adjust price or withdraw.
How does it differ from the letter of award?
The award accepts the offer; the notice to proceed instructs actual start.
Related terms
- Letter of awardThe letter that tells the contractor his offer is accepted.
- Site handoverThe owner formally handing the site to the contractor to start work.
- Baseline programmeThe programme approved at project start against which progress is measured.
- Extension of time (EOT)The contractor’s entitlement to additional time for delay not of its making, subject to timely notice.
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