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Notice to proceed
A notice to proceed is a formal written authorization from the owner telling the builder to start work.
Why it matters
It sets the official 'day one' of the construction schedule, which is important for tracking project deadlines and liquidated damages.
Where people get this wrong
Signing the contract is not always the notice to proceed. The notice to proceed often waits on permits or financing to be approved.
Real-world example
Your loan closes on Tuesday. On Wednesday, you issue the notice to proceed, and the builder's 180-day construction clock officially starts.
Where this hits your build
This comes up early, before construction starts. It affects your contract, your budget, or both. Misunderstanding it can cost you money or leverage.
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