What Substantial Completion means
AIA A201-2017 §9.8.1 defines Substantial Completion as the stage when the Work, or a designated portion, is sufficiently complete under the Contract Documents that the Owner can occupy or utilize it for its intended use.
- The trap: finishing every punch-list item and final payment come later.
- The correction period starts at Substantial Completion; it does not end there.
Who writes the punch list
Under §9.8.2, the Contractor prepares and submits to the Architect a comprehensive list of items to be completed or corrected before final payment.
- The common error is to say the Architect prepares it. The Architect inspects afterward, under §9.8.3.
- Neither the Owner nor the Initial Decision Maker prepares it.
The one-year correction period
§12.2.2.1 sets the correction period at one year after the date of Substantial Completion of the Work or designated portion, or after the warranty start date under §9.9.1.
- Within that year the Contractor must correct nonconforming Work promptly after the Owner's written notice.
- The Owner waives the correction right if it gives no notice within the year.
- It is not a limit on warranties and not a statute of limitations. §15.1.2 sets the separate outer limit of 10 years after Substantial Completion.
- Starting the year at final payment or at the final Certificate for Payment uses the wrong trigger. Two years is not the A201 figure.
The Contractor's general warranty
§3.5.1: the Contractor warrants to the Owner and the Architect that materials are of good quality and new and that the Work conforms to the Contract Documents.
Saying it runs to the Owner only is the common error; naming the Architect alone omits the Owner, and the surety is not a beneficiary.
Special warranties
§3.5.2: a special warranty required by the specifications, such as a roofing manufacturer's warranty, must be issued in the name of the Owner or be transferable to the Owner, and it commences in accordance with §9.8.4, at Substantial Completion.
- Starting warranties at final payment is the common error.
- A Contractor-named warranty does not satisfy the clause. The Agreement date and the end of the correction period are not the start.