Georgia Residential Contractor Practice Exam 2025 – Comprehensive All-in-One Guide for Success

"Substantial completion" in construction refers to a stage in the project where the owner can occupy or use the project, even if some minor finishing touches are still pending. This concept is essential in construction contracts because it usually marks the point at which the owner can begin using the building for its intended purpose, which may lead to the start of occupancy or the initiation of lease arrangements.

Achieving substantial completion is crucial for other project milestones, such as the release of retention payments to contractors or the commencement of warranties. It signals that the contractor has fulfilled a significant portion of the contract requirements and that the project is functional, despite any outstanding minor details. This stage does not imply that the project is completely finished or that all inspections have been passed; instead, it highlights the readiness of the project for use.

The other options, while related to stages of construction, do not accurately capture the essence of "substantial completion" as understood in industry terminology. The focus is not solely on the project being 100% finished or on the readiness for inspection, nor on cleaning the site, but rather on the owner's ability to begin use of the project.