What does 'substantial completion' typically indicate in a construction project?

'Substantial completion' is a specific milestone in a construction project that indicates the project is sufficiently complete in accordance with the contract documents, allowing the owner to occupy or use the building for its intended purpose. This means that while minor details, corrections, or touch-ups may still be outstanding, the primary objectives of the project have been met, and the owner can start utilizing the space.

This term is crucial because it can trigger various contractual obligations, such as the start of warranties, the beginning of certain payment schedules, and the transition of responsibility for the property from the contractor to the owner. Essentially, substantial completion signifies that the project is operational, even if it is not completely finished in a cosmetic sense.

In contrast, while the other options mention conditions related to project completion, they do not accurately reflect the meaning of substantial completion. The project does not need to be fully finished, and payments may still be outstanding, as per the contractual agreements. Additionally, inspections might still be required after substantial completion, but the key characteristic is the ability to occupy or use the project for its intended purposes.