What term describes a facility that is ready for its intended use but not all work is complete?

What term describes a facility that is ready for its intended use but not all work is complete?

• A. Substantial Completion
• B. Practical Completion
• C. Final Completion
• D. Occupancy Permit

Answer: (A)

Substantial completion means the facility is ready for its intended use, even though some small items may still be unfinished. At this point the major work is done, the building can be occupied and used, and the contract typically shifts certain responsibilities (warranties begin, punch list items are identified, and occupancy can commence). The remaining tasks are usually minor and do not prevent use of the space for its primary purpose. Final completion would require all work and closeout items to be finished, with no remaining tasks. An occupancy permit is a separate regulatory clearance required by authorities to allow people to occupy the building, not the contract milestone that marks readiness for use. Practical completion is a term used in some contracts that can be similar, but the standard concept described here is substantial completion.

Substantial completion means the facility is ready for its intended use, even though some small items may still be unfinished. At this point the major work is done, the building can be occupied and used, and the contract typically shifts certain responsibilities (warranties begin, punch list items are identified, and occupancy can commence). The remaining tasks are usually minor and do not prevent use of the space for its primary purpose.

Final completion would require all work and closeout items to be finished, with no remaining tasks. An occupancy permit is a separate regulatory clearance required by authorities to allow people to occupy the building, not the contract milestone that marks readiness for use. Practical completion is a term used in some contracts that can be similar, but the standard concept described here is substantial completion.