Notice to Proceed (NTP)

A Notice to Proceed (NTP) is the formal government authorization directing a contractor to begin performance under an awarded contract, establishing the official start date from which contract milestones and deadlines are measured.

What is a Notice to Proceed?

An NTP is issued by the contracting officer after contract award, authorizing the contractor to begin performance. While the contract creates the legal obligation, the NTP is the practical "go signal" that starts the performance clock. Without an NTP, contractors generally should not begin work even if they have a signed contract, beginning work before NTP can create problems with cost authorization, schedule calculation, and risk allocation.

The NTP is particularly important in:

• Construction contracts: Construction NTPs establish Day 1 of the performance period from which all schedule requirements, liquidated damages provisions, and milestone dates are calculated
• Service contracts: Service NTPs confirm the start date for the base period of performance and any transition period
• Task orders: Individual task order NTPs authorize work on specific tasks under an IDIQ contract

The NTP may be a simple letter or formal contract modification. It typically specifies:

• The authorized start date
• The performance period end date
• Any specific directions for the initial phase of performance
• The contracting officer's representative (COR) contact information

Some contracts authorize a "limited NTP", allowing certain preliminary activities (mobilization, hiring, facility access) before full performance authorization. This is common in construction to allow the contractor to order long-lead materials before the full NTP is issued.

Why NTP matters for government contractors

The NTP date determines your entire contract schedule. Every milestone, deliverable, and reporting requirement is measured from NTP. In construction contracts with liquidated damages provisions, a delayed NTP from the government shifts the entire schedule forward, but only if the contractor documents the delay and requests a compensable or excusable delay. Beginning work before official NTP, then discovering you started on the wrong date, can invalidate the entire schedule basis. Establishing a project management baseline on the NTP date, with deliverable dates calculated forward from that day, is a fundamental contract administration discipline.

Example

A federal construction contract for a new VA clinic specifies a 540-day performance period with $5,000 per day in liquidated damages for late completion. The contract is awarded on January 10. The contracting officer issues the NTP on February 3, the official Day 1 of the 540-day period. The contractor calculates the required completion date as June 27 of the following year. When the contracting officer requests an additional parking lot not in the original scope on March 15, the contractor submits a request for equitable adjustment that includes a 21-day schedule extension, preserving their ability to complete by the adjusted deadline without incurring liquidated damages.

Frequently Asked Questions

How long after award is an NTP typically issued?

For service contracts, NTPs are often issued simultaneously with or immediately after the notice of award. For construction contracts, the government needs time to complete pre-construction activities, submitting permits, finalizing drawings, completing site access arrangements, so NTPs may be issued 30-90 days after award. The RFP usually specifies the anticipated time between award and NTP.

What if the NTP is delayed beyond the expected date?

A delayed NTP that the contractor cannot control may be a compensable government delay. Contractors who experience government-caused NTP delays should document the delay in writing, notify the contracting officer, and preserve their right to an equitable adjustment for any costs or schedule impacts caused by the delay.

Can work begin before the NTP if the contractor is ready?

Generally no. Beginning work before the NTP is at the contractor's risk, costs incurred before the NTP may be unallowable, and any delays that occur before the official start date may not support an equitable adjustment claim. There are limited exceptions when the contract explicitly authorizes pre-NTP mobilization activities.

Is an NTP required for all contracts?

Not always. Many service contracts include performance start dates in the contract itself, with the NTP being implicit in the contract terms. However, for construction, fixed-price supply, and complex service contracts where the start date significantly affects scheduling and pricing, an explicit NTP is standard practice.