Construction Corner - What does Substantial Completion mean?
Substantial Completion in construction is a key milestone indicating that a project is sufficiently finished such that the building or structure is usable for its intended purpose, even if some minor work remains. At this stage:
Occupancy: The building is safe and ready for occupancy or use, although some final touches or punch list items might still need to be completed.
Inspection: A substantial completion inspection is often conducted to ensure that the project meets the contractual requirements and building codes.
Contractor's Responsibilities: The contractor’s responsibilities for the major aspects of the project are largely fulfilled, but they may still need to address minor issues or complete remaining work.
Reaching substantial completion is significant because it typically triggers a range of contractual and financial provisions, such as the start of the warranty period, final payments, and the transition from construction to operational status.