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Substantial completion

The stage at which the work on a construction project is certified as being sufficiently complete and in compliance with the contract, such that the owner can begin occupying or otherwise using the developed asset for its intended purpose.

Substantial completion is the stage in a project where the work is sufficiently complete for the owner to use or occupy the building, even if minor tasks or corrective work remain. It marks a significant milestone, often triggering the release of retainage and the start of warranty periods.

Used in a sentence

The project has reached substantial completion, allowing the owner to occupy the building.

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