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substantial completion

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substantial completion
The point at which a construction contract has been completed to the point that the owner or tenant may use the property in the manner in which it was intended,even though some work may remain undone. As used in leases for the start date of rent, construction loans for the maturity of the loan,and construction contracts defining the timing of draw schedules, the term may be defined someplace else in the document. That definition, if it exists, will control the rights and responsibilities of the parties, even if the definition is completely different from the normal understanding of the parties.


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