Couple questions regarding retainage, punchlist, and substantial/final completion (A201)



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    Abegail (Edited )

    Substantial completion is a stage where the project is complete enough to the point where it can be used for it's intended purpose. So if it's say, a house, and everything else was okay but then something went wrong with the plumbing, contractor has to fix it to achieve substantial completion so you can move in. Then the things that would remain for final would be for example things that you mentioned.. like asphalt on driveway, landscape, etc.

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    Michael Lawson

    The ARE Handbook has a good example of a punch list, and what is required for Substantial Completion. In CE Section 4, one of the quiz items asks what item needs to be completed before the owner can move in. You have to think about what is required by code against what is a cosmetic change. 

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    Kurt Fanderclai

    Hi Yingnan -- 

    The best thing you can do is read AHPP pages 730 to 733 or so.

    I think your main misunderstanding has to do with WHEN the punch list items are completed.

    The contractor attaches the punch list when they submit for Substanitial Completion.  The architect can add items, and will then certify Substantial Completion via the G704, which directly references that the punch list items must still be completed to achieve Final Completion.   (Read the G704).

    So the Punch List items are completed after Substantial Completioin and before Final Completion.

    Retainage is released at Substantial Completion, minus a sum for completion of the Punch List items, which is then recieved by the Contractor as part of the Final Payment.


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    Kurt Fanderclai

    Also note the various events that occur as part of Substantial Completion.

    Contract time ends, many statutes begin (specific to each state), warranty period begins, the Owner takes possession and must take over insurance coverage and utilities, etc.

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    Yingnan Bao

    Thanks everyone for your help! Make sense to me now. :D

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