Certificate of Substantial Completion

Definition

A certificate of substantial completion is a written document forwarded to the general contractor by the architect, engineer, or owner indicating that the project is substantially complete, initiating the time period for the final payment to the contractor.

Purpose

The purpose of the certificate of substantial completion is to officially recognize that the project has reached a stage where it can be used for its intended purpose, with only minor work remaining.

Examples of Use

1. Project Handover: Issuing the certificate when the building is ready for occupancy, even if some minor work or corrections are pending.
2. Warranty Start: The issuance of the certificate often marks the beginning of the warranty period for the construction work.
3. Final Inspections: Following final inspections, the certificate indicates that the major contractual obligations have been fulfilled.

Related Terms

• Punch List: A list of items that need to be completed or corrected before final project acceptance.
• Final Payment: The last payment made to the contractor upon completing all work and resolving punch list items.
• Occupancy Permit: A document issued by local authorities allowing the building to be used for its intended purpose.

Notes

• The certificate of substantial completion does not mean the project is entirely finished but indicates that remaining work will not hinder occupancy.
• It is a key document for transitioning from construction to building operation.