What is a Certificate of Substantial Completion?

A Certificate of Substantial Completion is an important document in the construction process that indicates that a building or project is sufficiently complete to be used for its intended purpose, even if there are still some minor items pending resolution. This certificate is significant because it marks a key milestone in a construction project: it confirms that the owner can occupy or utilize the structure, although a few final items might still need to be addressed.

The importance of this certificate lies in its implications, such as the transfer of responsibility for insurance and a shift in warranty timelines to the owner, as well as the initiation of final payment procedures in many contract agreements. It signifies not only the end of major construction activities but also the transition to occupancy and operational use of the facility, which is what distinguishes it from merely stating that construction is complete or that a project cannot be used. This understanding ensures that all parties involved in a construction project are aligned and aware of their obligations moving forward.