All industries › Glossary › Notice to proceed

Glossary

Notice to proceed

Also: NTP, full notice to proceed, limited notice to proceed

The go-ahead to start work: from an owner to its builder, or from a developer to the utility building its grid connection.

On a construction contract, the owner's notice to proceed tells the EPC contractor to start. A limited notice to proceed (LNTP) releases early work, such as ordering long-lead equipment or engineering; full notice to proceed usually comes when financing closes and lets the builder mobilize crews.

In an interconnection agreement, the developer's notice to proceed tells the utility to start building the grid connection, usually with financial security posted. Some grid operators publish that milestone in their queue, which makes it one of the few public signs that money is moving.

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