Commencement date

Commencement date is a date shown in contract when the described activities should begin. The contractor has to be prepared to begin the contract realization (e.g. start a project) on the commencement date. Not beginning at that date can be related to penalty.

The commencement date doesn't have to be stated in the contract. Sometimes end date is enough and contractor is able to create project schedule based on it. However in more complex projects it is good to state commencement date.

The commencement date is also an obligation for another part of the contract. It is the case if the place of construction or place of service has to be prepared before commencement date by the purchaser. If the place is not ready, purchaser cannot ask for penalty from contractor.


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