Why Is Substantial Completion Important?
Typically, Achieving Substantial Completion Entitles the Contractor to Receive Full Payment for His Work, Less Amounts the Owner Can Retain to Secure...
Typically, achieving Substantial Completion entitles the contractor to receive full payment for his work, less amounts the owner can retain to secure outstanding punch list work or to secure repairs for defective work. As a result, a contractor is entitled to payment even though the project is not fully complete.
What does substantial completion mean?
Substantial completion means the project, or a portion of the project, is fit for its intended use. The owner can then occupy and use the property. The owner must also pay the contractor the last portion of the monies owed for that project or portion of the project.
What does substantial completion trigger?
Substantial completion also triggers the clock for mechanics lien claims and payment bond claims in many states. For example, in Louisiana, a lien claimant has 60 days from substantial completion of the project to file a lien claim.
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