Describe the function of a "Notice to Proceed" in construction contracts.

The function of a "Notice to Proceed" in construction contracts is fundamentally to provide a formal declaration that authorizes the contractor to commence work in accordance with the terms outlined in the contract. This notice marks the official start of the contract period, which is crucial because it establishes the timeline for the project and initiates the contractor's obligations to complete the work as specified.

Receiving a "Notice to Proceed" typically means that all pre-construction conditions have been met, such as securing necessary permits, finalizing project schedules, and ensuring funding is in place. This document is essential as it helps to clarify the start date for both the contractor and the project owner, thus facilitating coordinated efforts towards meeting project milestones and deadlines.

Understanding this function is vital for project management, as any delays in issuing the "Notice to Proceed" can impact the overall project timeline and potentially lead to disputes regarding performance and compensation.