A project owner’s issuance of a “notice to proceed” is a crucial step in a construction project. The contractor’s scheduling and sequencing of the work is dependent on a known start date. The contractual performance period starts to run upon notice to proceed.
A Virginia court recently addressed a situation in which the contract documents did not stipulate a deadline for issuing a notice to proceed. It appeared the owner could award the contract and then leave the contractor hanging regarding a commencement date. The project architect had stated, at a pre-bid conference, that he anticipated a notice to proceed in mid-May. But was that enforceable?
The other case in this issue also involved timely commencement of the work. In this case, the contract stipulated a deadline for authorizing a start. The project owner did not have the site ready in time and issued change orders granting the contractor certain extended site costs. Did the change orders waive the no-damages-for-delay clause in the contract?
