The completion of the substantial is a key milestone since it may impact payment, responsibility, warranties, insurance and the project schedule. The point of doing a substantial completion vs final completion is that the majority of contractors are able to reach the point of substantial completion when the work is in such a state that it might be used for its intended purpose, but there is still a bit of corrective work to be done. What it means and the specific criteria for attaining this milestone will be defined in the contract. After he/she has made the project substantially complete, the contractor may be responsible primarily for completion of punch-list and other final work. Depending on the agreement, retainage and/or other payments could be impacted. It's important, therefore, that contractors and owners have proper documentation.
### 3. What's the significance of substantial completion for construction contractors? The completion of the substantial is a key milestone since it may impact payment, responsibility, warranties, insurance and the project schedule. The point of doing a substantial completion vs final completion is that the majority of contractors are able to reach the point of substantial completion when the work is in such a state that it might be used for its intended purpose, but there is still a bit of corrective work to be done. What it means and the specific criteria for attaining this milestone will be defined in the contract. After he/she has made the project substantially complete, the contractor may be responsible primarily for completion of punch-list and other final work. Depending on the agreement, retainage and/or other payments could be impacted. It's important, therefore, that contractors and owners have proper documentation.
