What is the benefit of achieving 'substantial completion'?

Achieving 'substantial completion' is a crucial milestone in the construction process because it signifies that the project is sufficiently complete in accordance with the contract, allowing the owner or client to occupy or use the project for its intended purpose. This stage is important as it marks a transition point where the project can be utilized even if some minor tasks or touches are yet to be finalized. It essentially confirms that the main objectives of the project have been met, which can be beneficial for cash flow and progressing toward project closure.

While the completion might not encompass every detail or formal paperwork, and while it does not guarantee payment for all contractors or trigger inspections in and of itself, its primary significance lies in its enabling part for the client’s functional use of the completed areas of the project. This use reflects the value and investment in the construction, even before final completion is achieved.