A notice to proceed is the formal letter or document from the owner telling the contractor to begin work. In most contracts, the NTP date (or a set number of days after it) starts the contract time, the countdown to substantial completion. Some jobs use a limited NTP first, authorizing only certain work, like mobilization, design or long-lead procurement, before a full NTP.
Why it matters
The NTP date is the anchor for schedule, liquidated damages and time-extension claims. Starting work before you have it can mean unpaid work if the project stalls, and an unclear NTP date makes every later schedule argument harder.
Worked example
Illustrative: a contract allows 540 calendar days from NTP to substantial completion, and NTP is issued March 3. Counting from that date, completion lands roughly 18 months later, in late August of the following year. If the owner issues the NTP three weeks late, the completion date should move with it, and that delay may be compensable depending on the contract.
Common mistakes
- Mobilizing on a handshake before a written NTP.
- Confusing a limited NTP with authorization for the full scope.
- Not recording the NTP date in the schedule baseline.
How os.construction handles it
We’re building contract milestones like NTP and substantial completion as dated records that drive the schedule baseline and contract-time tracking. It’s in development with founding contractors.