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contracting

Substantial Completion

The contractual milestone at which a project is sufficiently complete that the owner can use it for its intended purpose.

Definition

What substantial completion actually means.

Substantial Completion is a contractual milestone separate from "final completion." The owner can occupy and use the space, the certificate of occupancy is typically issued, retainage may be released, and the warranty period begins. Punch-list items remain but don't prevent use. The exact definition is contract-specific and worth defining clearly up front, especially when schedule deadlines (PCS moves, listing dates, lease starts) drive the project.

Sources
  • AIA A101 — substantial completion definition
  • Georgia Building Code — certificate of occupancy issuance
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