What is a notice to proceed?

A notice to proceed is an official letter that signals to the contractor that they are authorized to commence work on a specific project. This document is critical as it marks the formal initiation of the construction or project activities, indicating that all necessary preconditions, such as contracts and necessary permits, have been fulfilled. Essentially, it serves as a go-ahead for the contractor, helping to establish a timeline for project completion and ensure that work begins in an orderly manner.

In the context of project management and municipal finance, the notice to proceed helps in maintaining clarity and accountability between the project owner and the contractor. It is an essential step in project execution, ensuring that all stakeholders are aligned on the project’s start.