What is defined as Substantial Completion?

Substantial completion is a key milestone in the construction process, signifying that a project is sufficiently complete in accordance with the contract documents, allowing the owner to occupy or utilize the space for its intended purpose. At this stage, while some minor work or finishing touches may still be underway, the essential elements of the project are functional, and the owner can take occupancy.

Option B captures this definition accurately because it emphasizes that the work is ready for occupancy and use, indicating that the project has met the necessary requirements to be considered substantially complete.

The other options don't align with the concept of substantial completion. Stating that the project is fully finished does not consider that there may still be minor work left to complete. Approval of initial design sketches refers to an early phase in the project and has no relation to the extent of completed work. Mentioning that all payments to subcontractors are completed does not reflect the state of physical construction; it pertains to financial obligations rather than the actual readiness of the space for use.