What does "substantial completion" mean?

"Substantial completion" refers to a stage in the construction process where the project is largely finished and can be used for its intended purpose, although there may still be minor issues that need to be resolved. This definition is significant because it indicates that the project is sufficiently complete to enable the owner to occupy or utilize the building, even if some minor work remains outstanding.

In this context, minor issues could include items like touch-up painting, final adjustments to fixtures, or incomplete landscaping, which do not impede the overall functionality of the project. Recognizing substantial completion is crucial for financial and legal purposes, as it often triggers the beginning of warranty periods and the finalization of project payments.

The other options do not accurately capture the essence of "substantial completion." Fully completed projects ready for immediate use do not account for the minor issues that may still exist at this stage. Similarly, indicating the project is still in the design phase misrepresents the level of completion implied by this term. Finally, stating that the project will be completed ahead of schedule focuses on timelines rather than the condition of completion, which is not what "substantial completion" describes.