What is it called when an owner occupies a project before it is 100% complete?

What is it called when an owner occupies a project before it is 100% complete?

• A. Substantial completion
• B. Final completion
• C. Partial occupancy
• D. Certificate of occupancy

Answer: (A)

Substantial completion is the milestone when the project is ready for its intended use, allowing the owner to occupy and begin operations even though some minor work may still remain. This point marks a shift in responsibilities: the contractor typically handles finishing items listed on the punch list, while the owner starts occupying the space and assumes more ongoing use risks. It also often triggers the start of warranty periods and affects final payments and retainage, since the principal, but not all, work is deemed complete. A certificate of occupancy is a separate approval from the local building department confirming code compliance and safety for occupancy, usually obtained after substantial completion. Final completion comes later, after all work and closeout requirements are finished.

Substantial completion is the milestone when the project is ready for its intended use, allowing the owner to occupy and begin operations even though some minor work may still remain. This point marks a shift in responsibilities: the contractor typically handles finishing items listed on the punch list, while the owner starts occupying the space and assumes more ongoing use risks. It also often triggers the start of warranty periods and affects final payments and retainage, since the principal, but not all, work is deemed complete. A certificate of occupancy is a separate approval from the local building department confirming code compliance and safety for occupancy, usually obtained after substantial completion. Final completion comes later, after all work and closeout requirements are finished.