When does a project reach substantial completion?

Comprehensive and Detailed Explanation (CSI-aligned, paraphrased)

CSI and commonly used general conditions define Substantial Completion as the stage in the progress of the Work when:

The Work, or a designated portion, is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize it for its intended use.

Important implications in CSI/CDT context:

Substantial Completion is a functional milestone, not simply an administrative or paperwork milestone.

At Substantial Completion:

The Owner can begin using the facility for its intended purpose (e.g., occupy offices, treat patients, teach classes).

The warranty periods typically begin, unless otherwise specified.

The responsibility for utilities, security, and insurance often shifts in whole or in part to the Owner.

Final inspections, final payment, and complete closeout documentation generally occur after Substantial Completion.

So the correct definition is:

A. When the project is sufficiently complete to allow its intended use.

Why the other options are not correct:

B. When the project receives final inspections from the authorities having jurisdiction – AHJ inspections (for occupancy permits, etc.) are important and often coincide with or enable Substantial Completion, but they are regulatory milestones, not the contractual definition itself. Substantial Completion is determined under the contract, usually via certification by the A/E.

C. When the contractor’s final application for payment is approved – That is associated with Final Completion, which occurs after all work (including punch list) is done and all closeout requirements are met. Substantial Completion occurs before final payment.

D. When all of the close-out documents have been reviewed and approved – Closeout submittals (O&M manuals, warranties, as-builts) are typically prerequisites for final payment and Final Completion, not for Substantial Completion.

Key CSI-Related Reference Titles (no links):

CSI Project Delivery Practice Guide – sections on Construction Phase, Substantial Completion, and Final Completion.

CSI Construction Specifications Practice Guide – Division 01 “Closeout Procedures” and “Substantial Completion” articles.

CSI CDT Study Materials – definitions of Substantial and Final Completion.