Dashpivot Article – Notice to Proceed Sample

Notice to Proceed Sample

Notice to Proceed Sample for Construction

Why Do You Need a Notice to Proceed?

Starting a construction project is exciting, but before the actual work can begin on site, there's an essential step that needs to be taken: receiving a Notice to Proceed. This is especially crucial for all the different teams and individuals hired for the project. Even though a project schedule might kick off from the moment the contract is signed, the physical work doesn't start until this notice is given by the hiring party.

What is a Notice to Proceed (NTP)?

A Notice to Proceed is an official document given to the contractor, permitting them to begin the work outlined in the contract starting from a certain date. This document marks the official commencement of the project.

A Notice to Proceed is essentially a green light, signalling that it's time to start work under a construction contract. This crucial communication can come from any party that has engaged another party for work on the project. This includes situations like a project owner giving the go signal to a contractor, or a general contractor instructing a subcontractor to begin their tasks.

Read on to learn about the importance of a Notice to Proceed document in construction, when it should be issued, how to write one, plus we have included a Notice to Proceed sample template to get you started.

Why Is a Notice to Proceed So Important?

A Notice to Proceed is a straightforward way to ensure everyone is on the same page from day one. Here are just some of the ways a Notice to Proceed document achieves this:

Contract Terms

Construction contracts often require a written notice for various reasons such as changes to the project, different site conditions than expected, additional work, or other unforeseen events that could affect the time and cost of the project. The Notice to Proceed is key to following the contract's terms, allowing the contractor to ask for more time and money if needed and to protect their rights in case any unexpected issues pop up.

Documentation

Documentation plays a big role in keeping everyone on the same page regarding deadlines, rights, and understanding. This can be a lifesaver in avoiding disputes over payments. Without a written Notice to Proceed, misunderstandings can easily arise, leading to the dreaded he-said/she-said situations about key project dates. A Notice to Proceed creates a clear connection to the contract that can be enforced legally if necessary.

Clear Communication

Communicating effectively also saves a lot of time and resources. By following a Notice to Proceed process, it ensures that no contractor or subcontractor starts working on their own accord without official authorisation. This is beneficial for contractors as it confirms that they should only start incurring costs and working on the project after receiving the notice.

Dealing with Delays

Delays are all too common in construction projects and often come with a hefty price tag, affecting contractors at all levels. It's standard practice for construction contracts to include clauses about liquidated damages if the project gets delayed.

When delays happen, it often leads to a blame game among parties, with each side arguing about when they were actually supposed to start working. A Notice to Proceed sets a clear and definite start date for the work, cutting through any confusion or dispute.

When Do You Issue a Notice to Proceed?

Once the construction contract is fully signed and in effect, it's time to issue a written Notice to Proceed to the contractor.

Before this, a Notice of Award is typically released by the project owner. This serves as a formal declaration that the contractor has been chosen for the project. The Notice to Proceed often follows or is issued simultaneously with the Notice of Award, authorising the contractor to begin initial preparations for the project. This includes ordering materials and formally engaging with subcontractors and vendors.

For contractors, receiving the NTP is a key step, acting as a safeguard before they commit resources and start contractual agreements.

How Do You Write a Notice to Proceed? (With Sample)

Writing a Notice to Proceed requires attention to detail to ensure clarity and compliance with the project's contract. Although the structure of an NTP can differ based on the project specifics and the contractual agreement, there are several key elements you'll typically need to include:

Project Information

This should cover the project's name, location, and a concise overview of what the project entails.

Contract Details

Mention the contract's identification number, the date it was signed, and the names of the parties involved.

Start Date

Clearly state the exact date the contractor is expected to commence work.

Contract Duration

Indicate how long the project is expected to take, usually noted in either calendar days or working days, starting from the specified start date.

Financial Information

Include details about the total contract value and any information regarding initial payments or funds for getting the project off the ground.

Signatures

The document should be officially signed by the party issuing the NTP and acknowledged by the contractor to indicate agreement.

These components ensure that the Notice to Proceed serves its purpose effectively, providing all parties with a clear understanding of when the project work begins and the terms that govern its execution.

Check out our Notice to Proceed sample template below.

Notice to Proceed

Use and customise this digital Notice to Proceed template for free

Digitise your Notice to Proceed Processes

The purpose of a Notice to Proceed is to offer a clear and unmistakable signal that it's time for a particular party to kick off their work on the project. It's a simple yet critical step in ensuring a smooth start to construction projects.

If you're manually drafting a Notice to Proceed for every project, this approach can be risky as it's all too easy to overlook crucial details.

Consider adopting a digital Notice to Proceed template. This tool allows you to generate NTP documents swiftly, with all essential sections and fields already in place.

The template includes form fields for project details, contractor information, start and completion dates, and a section for signatures from both parties, ensuring compliance right out of the gate.

Plus, with the option to customise the Notice to Proceed using a drag-and-drop form builder, you can easily add any additional information specific to your project's needs.

Streamlining Notice to Proceed Management with an App

Managing Notices to Proceed goes beyond just having all the correct details in place. It's about efficiently tracking these notices and their statuses to guarantee projects start as planned, without delays.

Introducing a Notice to Proceed app can significantly improve how you monitor NTP progress and determine the next steps. With features like automated workflows, the app sends out alerts for reviews, actions, or signatures needed, ensuring nothing falls through the cracks.

Moreover, the app's Timeline and Register views makes it easier to oversee multiple NTPs across various projects. This makes it simpler to ensure every detail is accounted for and you're always prepared for what comes next, eliminating manual errors and saving valuable time.

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About Ada Tabanao

Ada is a content marketer at Sitemate. She is based in sunny Manila, Philippines.

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