Substantial Completion

Substantial completion is the point when the owner can use the project for its intended purpose—only minor punch-list items remain.

Why It Matters

  • Often starts warranty and transfers care/custody to the owner.
  • Releases a large progress payment or retainage in some contracts.
  • Punch-list items are tracked to final completion.

Copy-Ready Clause

Upon substantial completion, Owner may occupy and use the Work. Contractor will complete punch-list items within a reasonable period, subject to access and material availability. Remaining retainage becomes due per the Payment Schedule.

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