Which of the following documents is essential for contractors before starting a project?

The notice to proceed is the key document that a contractor requires before initiating a project. This document formally authorizes the contractor to commence work and usually signifies that all necessary permits, contracts, and preconditions have been met. It serves as a clear starting signal and outlines crucial project details, including timing and expectations, which is vital for effective project management and coordination with subcontractors and suppliers.

Without a notice to proceed, contractors may face legal and operational complications, as starting work without this authorization could violate the terms of their contract or local regulations. This document also provides a basis for scheduling and resource allocation, ensuring that all parties understand when work is set to begin.

In contrast, while a financial audit report, performance report, and tax compliance certificate are important in the broader scope of contracting and project financing, they do not specifically authorize the commencement of work like the notice to proceed does.