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Contracts & Legal

Substantial Completion

In Plain English

The point when the project is complete enough for the owner to move in and use it for its intended purpose.

Definition

Substantial completion is the stage of project completion at which the work is sufficiently complete that the owner can occupy or utilize it for its intended purpose, even if minor items remain to be completed or corrected. It is a critical contract milestone that establishes when warranty periods begin, liquidated damages stop accruing, and retainage may be partially released. The architect certifies substantial completion.

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