Substantial Completion: Submittal Requirements Count

摘要

The substantial completion date on a project is considered by some to be the proverbial "day of reckoning." For contractors, liquidated damages and early completion bonuses and warranties are triggered by the date. Likewise, owners typically assume control of their "near-final" projects at this time, relinquish remaining retention, and conclude services with their architects and engineers. With so much at stake, the definition of "substantial completion" warrants careful study. In a recent decision, Appeal of Ellis Environmental Group, lc, the Armed Services Board of Contract Appeals (asbca) considered whether a contractor had achieved substantial completion despite the fact that certain technical requirements had not been satisfied. In June 2004 the Naval Facilities Engineering Command awarded a design/build contract to Ellis Environmental to construct diesel exhaust ventilation systems in certain fire stations around Florida's Naval Air Station Jacksonville. The project was to be substantially completed in five months.