What does the term "Substantial Completion" signify in construction?

"Substantial Completion" is a critical milestone in construction that indicates a stage when the project is mostly complete and ready for use or occupancy, even if some minor tasks or finishing touches remain. This concept is key in project management and contract law, as reaching this stage often triggers various contractual obligations, including the commencement of warranties and protection against claims for damages.

At this point, the owner can typically take possession of the property and begin using it for its intended purpose, even though the project may not yet be fully finished in every detail. This definition creates a clear distinction from alternative stages of completion, like final completion, which signifies that all work has been entirely finished to the specifications outlined in the contract. In real-world applications, understanding Substantial Completion is essential for managing timelines, budget considerations, and ensuring compliance with applicable laws and contractual terms.