What does the term 'substantially completed' refer to in construction?

The term 'substantially completed' in construction is used to indicate that a project has progressed to a point where it is usable for its intended purpose, even if there may still be some minor work to complete. This milestone is significant because it marks the transition from construction to occupancy or utilization, allowing the owner or occupant to begin using the building under normal conditions.

Substantial completion signifies that the essential components of the building are in place and functioning, and the building can be measured against its intended function. It often serves as a threshold for various legal and contractual obligations, such as the start of warranty periods and the beginning of occupancy.

The understanding that substantial completion is not defined strictly by the completion of finishes, framing, or the ability to conduct inspections is crucial. Instead, it highlights the overall usability of the structure for what it was designed to achieve, making option B the best choice in this context.