What does a Certificate of Substantial Performance indicate?

A Certificate of Substantial Performance signifies that a construction project has reached a state of substantial completion, meaning that the work is sufficiently finished according to the contract documents and can be used for its intended purpose. This milestone is essential within construction projects as it typically allows for the release of retainage payments to contractors, initiates the warranty period, and outlines the final steps toward formally completing the project.

Understanding the meaning of substantial performance is critical for all parties involved in the project, as it marks a key legal and contractual moment. While other options may appear related, such as readiness for occupancy or site inspections carried out by architects, they do not encapsulate the specific legal definition and implications of the Certificate of Substantial Performance itself.