What is a 'notice to proceed' in contract management?

A 'notice to proceed' in contract management is a formal notification issued by the contracting officer to the contractor, indicating that they are authorized to begin work on the project. It signifies that all prerequisites, such as contract execution, necessary approvals, and conditions that must be met before starting work, have been fulfilled. This document is crucial as it triggers the commencement of the contract timeline, allowing the contractor to mobilize resources and allocate personnel to start fulfilling the contract obligations.

The importance of the notice to proceed lies in its role in establishing the official start date of the project, which is essential for determining deadlines and making progress assessments. Once the contractor receives this notice, they can proceed with the work outlined in the contract without delay, ensuring that the project adheres to its scheduled timeframe.