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Substantial Completion Procedure

Document Type: Procedure
Version: 1.0
Last Updated: February 2026
Distribute To: Project Managers, Superintendents

Purpose​

Establish the process for achieving and documenting substantial completion, a critical project milestone.

What is Substantial Completion?​

Substantial completion is the stage when:

  • Work is sufficiently complete per contract
  • Owner can use or occupy for intended purpose
  • Only minor punch list items remain
  • Warranties begin
  • Final completion countdown starts

Substantial Completion Checklist​

Before Requesting Substantial Completion:​

Work Status:

  • All major work complete
  • All systems operational
  • Temporary items removed
  • Site cleaned
  • Punch list items identified (minor only)

Inspections:

  • Final building inspection passed
  • Fire marshal approval
  • All required inspections complete
  • Certificate of Occupancy obtainable

Documentation:

  • As-built markups substantially complete
  • O&M manuals ready (or in progress)
  • Training scheduled
  • Test reports complete
  • Warranties ready for submission

Financial:

  • Final change orders processed
  • Retention release terms understood
  • Final pay app ready

Substantial Completion Process​

Step 1: Internal Readiness Assessment​

PM/Super Walkthrough:

  • Walk entire project
  • Verify systems operational
  • Confirm punch items are minor
  • Ensure owner can occupy

Step 2: Request Inspection​

Notify:

  • Owner
  • Architect
  • Relevant authorities

Schedule:

  • Substantial completion walk
  • Allow adequate time
  • Ensure key personnel available

Step 3: Substantial Completion Walk​

Attendees:

  • Owner (or representative)
  • Architect
  • GC (PM and Super)
  • Key subcontractors (optional)

Process:

  • Walk all areas
  • Identify remaining items
  • Document punch list
  • Agree on completion status

Step 4: Execute Certificate​

If Substantially Complete:

  • Complete Certificate of Substantial Completion
  • Identify punch list items
  • Establish completion date
  • Define remaining obligations
  • All parties sign

Step 5: Post-Substantial Completion​

Immediately:

  • Distribute punch list
  • Start punch list completion
  • Transfer care/custody
  • Begin warranty period
  • Release retention (per contract)

Certificate of Substantial Completion​

================================================================
    CERTIFICATE OF SUBSTANTIAL COMPLETION
           (AIA Document G704)
================================================================

PROJECT: ____________________________________________________

PROJECT LOCATION: ___________________________________________

OWNER: _____________________________________________________

CONTRACTOR: ________________________________________________

CONTRACT DATE: _____________________________________________

================================================================

TO OWNER:                           TO CONTRACTOR:
_________________________          _________________________
_________________________          _________________________

================================================================

WORK COVERED:
☐ Entire project
☐ Designated portion as follows:
___________________________________________________________

================================================================

The Work performed under this Contract has been reviewed and 
found, to the Architect's best knowledge, information and 
belief, to be substantially complete.

SUBSTANTIAL COMPLETION DATE: _______________________________

The date above is the Date of Substantial Completion of the 
Project or portion designated above.

================================================================

RESPONSIBILITIES:

As of the Date of Substantial Completion, the Contractor 
shall be responsible for:
- Completion of punch list items (attached)
- Warranty obligations as defined in Contract
- Correction of defective work discovered during warranty

As of the Date of Substantial Completion, the Owner assumes:
- Responsibility for security
- Responsibility for maintenance
- Responsibility for insurance
- Risk of loss

================================================================

PUNCH LIST:

A list of items to be completed or corrected is attached.
The failure to include an item on this list does not alter 
the Contractor's responsibility to complete all work per 
the Contract Documents.

Number of Punch List Items: _________________________________

Punch List Completion Deadline: _____________________________

================================================================

WARRANTY:

Warranties required by the Contract Documents commence on 
the Date of Substantial Completion unless otherwise provided:
___________________________________________________________

================================================================

SIGNATURES:

ARCHITECT:
Signature: _________________________ Date: _________________
Name: _____________________________ 
Firm: _____________________________

CONTRACTOR:
Signature: _________________________ Date: _________________
Name: _____________________________
Title: ____________________________

OWNER:
Signature: _________________________ Date: _________________
Name: _____________________________
Title: ____________________________

================================================================

Substantial Completion vs. Final Completion​

AspectSubstantialFinal
Work StatusUsable, minor items remain100% complete
Punch ListIdentifiedComplete
WarrantiesBeginAlready started
RetentionPartial releaseFull release
OccupancyCan occupyOccupied
DocumentationIn progressDelivered

Common Issues​

Work Not Substantially Complete:​

  • Major systems not operational
  • Cannot obtain C of O
  • Significant work remaining
  • Safety concerns

Resolution:​

  • Defer substantial completion date
  • Address deficiencies
  • Re-walk when ready

Disputed Items:​

  • Document disagreement
  • Reference contract requirements
  • Consider architect's determination
  • Reserve rights in writing

Retention Release​

At Substantial Completion:​

  • Partial retention release common
  • Verify contract terms
  • Submit pay application
  • Include substantial completion certificate

Final Retention:​

  • Released at final completion
  • After all punch list complete
  • All documentation delivered
  • Final waivers collected
  • Punch List Procedure
  • Final Documentation
  • Final Pay Application
  • Warranty Tracking

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