Once the contract is fully executed, a written Notice to Proceed (NTP) is issued to the Contractor to commence the work and start the contract time as defined in Special Provision “Time of Completion and Liquidated Damages.” The Notice to Proceed date is the first day of the contract time.
Using Project Management Information Systems (PMIS) like PMWeb, project owners can better manage the issuance of this critical letter and ensure that it is aligned with the project’s contract clauses and best practices. PMWeb custom form builder will be used to create the template for the Notice to Proceed letter where the header will capture the date, project, contract, contractor, and document approval status as per the set workflow. The customs form will also include fields that are specific to the Notice to Proceed letter including Conditional Award Date, Bid Guarantee Expiry Date, NTP Effective Date, Contract Duration in Days, Contract Duration Spelled Out in words, and Project Completion Date. Other fields can be added if it is required for the NTP letter template.
In addition, the customs form will have a predefined checklist that needs to be verified by the assigned project team member before the NTP letter is issued. The checklist items need to be verified that they are available and if not or not applicable, then the comments field needs to be used to explain why. The checklist items could be also referenced to the relevant contract clause. The checklist items represent the project owner’s knowledge in issuing such letters and what needs to be checked to ensure it is correct.
The attachment tab will be used to upload and attach all documents and PMWeb records that could be relevant to the Notice to Proceed Letter. For example, those could the conditional award letter or letter of acceptance or award which was generated using PMWeb as well as the bid bond guarantee issued for the relevant contract. Other documents could include permit clearance among other documents that were used when responding to the checklist.
To ensure that all needed approvals for issuing the Notice to Proceed Letter, a workflow will be assigned to this form to ensure that all needed reviews, approvals, and final approvals are secured before issuing the letter. The workflow steps can be configured to Fulfill the internal review requirements for each project owner.
Finally, the PMWeb Word module will be used to create the output letter template for the Notice to Proceed. The variable content of the letter will be picked up from the Notice to Proceed Letter form. The letter can be merged into MS Word should there is a need to make any changes or modifications to the automatically generated letter.
About the Author
Bassam Samman, PMP, PSP, EVP, GPM is a Senior Project Management Consultant with more than 35-year service record providing project management and control services to over 100 projects with a total value of over US $5 Billion. Those projects included Commercial, Residential, Education, and Healthcare Buildings and Infrastructure, Entertainment and Shopping Malls, Oil and Gas Plants and Refineries, Telecommunication, and Information Technology projects. He is thoroughly experienced in complete project management including project management control systems, computerized project control software, claims analysis/prevention, risk analysis/management (contingency planning), design, supervision, training, and business development.
Bassam is a frequent speaker on topics relating to Project Management, Strategic Project Management, and Project Management Personal Skills. Over the past 35 years, he has lectured at more than 350 events and courses at different locations in the Middle East, North Africa, Europe, and South America. He has written more than 250 articles on project management and project management information systems that were featured in international and regional magazines and newspapers. He is a co-founder of the Project Management Institute- Arabian Gulf Chapter (PMI-AGC) and has served on its board of directors for more than 6 years. He is a certified Project Management Professional (PMP) from the Project Management Institute (PMI), a certified Planning and Scheduling Professional (PSP), and Earned Value Professional (EVP) from the American Association of Cost Engineers (AACE) and Green Project Management (GPM).
Bassam holds a Masters in Engineering Administration (Construction Management) with Faculty Commendation, George Washington University, Washington, D.C., USA, Bachelor in Civil Engineering – Kuwait University, Kuwait and has attended many executive management programs at Harvard Business School, Boston, USA, and London Business School, London, UK.