Have I Reached Substantial Completion?
Publication: Journal of Construction Engineering and Management
Volume 121, Issue 1
Abstract
This paper reviews the important issues related to determining if substantial completion of a construction project has been reached. This milestone is important because it means that the contractor is entitled to the release of retainage, less deductions for uncompleted work. Because the owner has the right to occupy and use the facility, there can be no breach of contract beyond this point in time because of late completion. Liquidated damages cannot be assessed beyond substantial completion. Equipment warranties also take effect. Four questions are addressed: Was the purpose of the project defeated? Did the owner benefit from using the project? How extensive are the defects? And, how easy are the defects to correct? Of these questions, the principle one is whether the purpose of the project was defeated. If no, or if the owner benefitted from the work, substantial completion has likely been achieved. Several examples are given.
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References
1.
American Institute of Architects (AIA). (1987). “Document A201: General conditions of the construction contract.” Washington, D.C.
2.
Black, H. C. (1979). Black's law dictionary, 5th Ed., West Publishing Co., St. Paul, Minn.
3.
Bramble, B. B. (1987). Construction delay claims. John Wiley & Sons, Inc., New York, N.Y.
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Corbin, A. L. (1963). Corbin on contracts : A comprehensive treatise on the rules of contract law. West Law Publishing Co., St. Paul, Minn.
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Ricchini, J. A., and O'Brien, J. J. (1990). Construction documentation. John Wiley & Sons, Inc., New York, N.Y.
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Copyright
Copyright © 1995 American Society of Civil Engineers.
History
Published online: Mar 1, 1995
Published in print: Mar 1995
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