Why is the Timing of Substantial Completion so Important?
The contract is the first place to look to determine the specifics of when a certificate of substantial completion should be issued. Assuming it is the point where a certificate of occupancy (CO) is also issued, this means that the governing authority has to approve the building to be occupied and used for its intended use. At this point, the contractor will often prepare a list of items to be completed for the architect and/or engineer to review and inspect. The architect and/or engineer will prepare the certificate of substantial completion and set a deadline to complete the final items. Depending on the contract, this is usually the point where the owner will have to pay the “final” payment minus costs to complete the final items. This is the number one reason issuance of the certificate of substantial completion is so important to a contractor (and/or subcontractor).
