What is achieved when the contractor has less than one percent of the work left to perform?

When a contractor has less than one percent of the work left to perform, it signifies that the project is nearing its completion and meets the criteria for substantial completion. At this stage, the project is considered sufficiently finished so that the owner can occupy or utilize the work for its intended purpose, even though there may be minor items left to finalize. Substantial completion is an important milestone that often triggers various contractual obligations, such as the commencement of warranty periods, the release of retainage, and the transition to the final inspection phase.

Achieving substantial completion allows the project to be functioning and enables the owner to begin using the facility while the contractor may continue to finish remaining tasks that do not significantly disrupt the use of the building. Therefore, when a contractor has nearly completed their work, it indicates that substantial completion has been achieved, marking a critical transition in the project timeline.