Substantial Completion is the date certified by the owner or design professional that the work is sufficiently complete in terms of the contract to allow use or occupancy of the facility or system. After substantial completion, the contractor is entitled to all but the retained portion of the contract amount.
Final Completion is the date the punch list items are certified as having been completed and agreed by both parties as to their completion. Final payment to the contractor is usually approved at this time.
Occupancy is the portion of the job in which the owner may begin use of the facility. Occupancy, as stated in the general conditions, does not constitute acceptance of the work that is not in accordance with the contract documents. Occupancy or use is generally initiated only upon substantial completion certification.
The contractor warrants all work performed by them for a period of one year following substantial completion certification.
The contractor who procured the equipment or material has the responsibility to repair or replace faulty or defective materials or equipment found within the general warranty period. An expressed warranty will stipulate the period of time that will apply to the warranty. A implied warranty indicates that the work of the contractor is guaranteed as stipulated in accordance with applicable law.
The types of claims an owner may exercise against a contractor.
Liquidated damages are penalties charged against the contractor by the owner.
Warranty claims eliminate future claims and transfer the risk to the contractor.
Negligence lets the owner bring litigation claims against a contractor in tort as well as for breach of contract for defective work.
Right to Terminate gives the owner the right to terminate the construction contract.
Indemnification requires the contractor to indemnify the owner against all claims, damages, losses and expenses due to the performance of work.
Disclaimer permits the owner to say the contractor will carry all risk for defects in the construction, if the two parties agree on this.
- The options the contractor has against the owner Disclaimer permits the contractor to say the owner will carry all risk for defects in the construction, if the two parties agree on this.