Navigating the construction process can be tricky, and one crucial step is confirming when a project is substantially complete. This is where a Substantial Completion Letter Sample comes into play. It’s a formal document that signals that the work is nearly finished and ready for the owner’s use, even if there are a few minor things left to do. This essay will break down what a Substantial Completion Letter is, why it’s important, and provide different examples to get you started.
What is a Substantial Completion Letter?
A Substantial Completion Letter is a formal written communication from a contractor to the project owner (or their representative, like an architect). It states that the project is substantially complete. This means that the project is in a condition where the owner can use it for its intended purpose, even if there are a few minor tasks, known as “punch list” items, that still need to be finished. Think of it like this: the building is usable, but there might be some paint touch-ups or final electrical work left to do. This letter is more than just a formality; it has legal and financial implications.
This letter is super important because it kicks off a bunch of important actions, including payment, warranties, and the official start of the owner’s use of the property. It’s usually sent after the project reaches a certain stage, outlined in the construction contract. The contract typically defines what “substantial completion” means for the project. The letter confirms that the contractor has met these requirements.
Here are some common things usually included in a Substantial Completion Letter, in addition to the obvious:
- A formal statement of completion.
- The date of substantial completion.
- A description of any remaining work (the punch list).
- A proposed date for final completion.
- A request for inspection by the owner.
- A statement about the transfer of risk of loss and the warranty period.
Example: Substantial Completion Letter to Owner
[Your Company Letterhead]
[Date]
[Owner’s Name]
[Owner’s Address]
Subject: Notice of Substantial Completion – [Project Name] – [Project Address]
Dear [Owner’s Name],
This letter is to formally notify you that the construction of [Project Name] located at [Project Address] has reached Substantial Completion as of [Date of Substantial Completion].
We have completed all work required under the contract documents, except for a few minor items outlined in the attached Punch List. We anticipate completing these items by [Date of Final Completion].
We request that you inspect the project and confirm your acceptance of Substantial Completion. Please contact us to schedule a convenient time for the inspection.
Upon your acceptance, we will prepare the final application for payment, in accordance with the contract.
We appreciate the opportunity to work on this project and look forward to its successful completion.
Sincerely,
[Your Name]
[Your Title]
Example: Email to Architect Regarding Substantial Completion
Subject: Substantial Completion Notification – [Project Name]
Dear [Architect’s Name],
This email serves as notification that we believe the [Project Name] project is substantially complete as of [Date]. We have completed the majority of the work in accordance with the contract documents, with the exception of items listed in the attached punch list.
We would appreciate it if you could arrange an inspection with the owner to confirm substantial completion. Please let us know your availability to coordinate this.
We anticipate completing the punch list items by [Date], and will keep you updated on our progress.
Please let me know if you have any questions.
Sincerely,
[Your Name]
[Your Title]
Example: Substantial Completion Letter Acknowledging Delays
[Your Company Letterhead]
[Date]
[Owner’s Name]
[Owner’s Address]
Subject: Notice of Substantial Completion – [Project Name] – [Project Address] – Acknowledging Delays
Dear [Owner’s Name],
This letter is to formally notify you that the construction of [Project Name] located at [Project Address] has reached Substantial Completion as of [Date of Substantial Completion].
We have completed all work required under the contract documents, except for a few minor items outlined in the attached Punch List. We anticipate completing these items by [Date of Final Completion].
We do want to acknowledge that Substantial Completion was delayed from the originally scheduled date of [Original Substantial Completion Date] due to [Brief Explanation of Delay, e.g., unexpected material delays]. We apologize for any inconvenience this has caused.
We request that you inspect the project and confirm your acceptance of Substantial Completion. Please contact us to schedule a convenient time for the inspection.
Upon your acceptance, we will prepare the final application for payment, in accordance with the contract.
We appreciate the opportunity to work on this project and look forward to its successful completion.
Sincerely,
[Your Name]
[Your Title]
Example: Letter to Subcontractor Regarding Substantial Completion
[Your Company Letterhead]
[Date]
[Subcontractor’s Name]
[Subcontractor’s Address]
Subject: Substantial Completion – [Project Name] – [Your Company’s Project Number]
Dear [Subcontractor’s Name],
This letter is to inform you that the [Project Name] project has achieved Substantial Completion as of [Date].
Your work on the project is substantially complete, with the exception of the punch list items listed in the attached document (if applicable).
We require that you complete the remaining work by [Date]. Please coordinate with [Contact Person and Contact Info] to schedule your final inspections and address any outstanding issues.
Upon completion of your punch list items, we will process your final payment.
Thank you for your hard work and dedication to this project.
Sincerely,
[Your Name]
[Your Title]
Example: Substantial Completion Letter with a Change Order
[Your Company Letterhead]
[Date]
[Owner’s Name]
[Owner’s Address]
Subject: Notice of Substantial Completion – [Project Name] – [Project Address] and Change Order
Dear [Owner’s Name],
This letter is to formally notify you that the construction of [Project Name] located at [Project Address] has reached Substantial Completion as of [Date of Substantial Completion].
We have completed all work required under the contract documents, except for a few minor items outlined in the attached Punch List. We anticipate completing these items by [Date of Final Completion].
Additionally, we request that you review and approve the attached Change Order #[Change Order Number], which covers [Brief description of the change order – e.g., additional work for the new landscaping]. This change order increases the total project cost by $[Amount] and will be added to the final payment.
We request that you inspect the project and confirm your acceptance of Substantial Completion. Please contact us to schedule a convenient time for the inspection.
Upon your acceptance, we will prepare the final application for payment, in accordance with the contract.
We appreciate the opportunity to work on this project and look forward to its successful completion.
Sincerely,
[Your Name]
[Your Title]
Example: A Substantial Completion Letter Requesting an Extension (Rare)
[Your Company Letterhead]
[Date]
[Owner’s Name]
[Owner’s Address]
Subject: Notice of Substantial Completion – [Project Name] – [Project Address] – Request for Extension
Dear [Owner’s Name],
This letter is to formally notify you that the construction of [Project Name] located at [Project Address] is near Substantial Completion. We anticipate reaching Substantial Completion by [Original Anticipated Date].
Due to [Brief explanation of the reason for needing an extension, e.g., unforeseen weather delays, material shortages], we are requesting a [Number] day extension to the Substantial Completion date. We now anticipate Substantial Completion by [New Anticipated Substantial Completion Date]. We have completed all work required under the contract documents, except for a few minor items outlined in the attached Punch List. We anticipate completing these items by [Date of Final Completion].
We request that you inspect the project and confirm your acceptance of Substantial Completion. Please contact us to schedule a convenient time for the inspection.
Upon your acceptance, we will prepare the final application for payment, in accordance with the contract.
We appreciate the opportunity to work on this project and look forward to its successful completion.
Sincerely,
[Your Name]
[Your Title]
Example: Substantial Completion Letter Withholding Payment Explanation
[Your Company Letterhead]
[Date]
[Owner’s Name]
[Owner’s Address]
Subject: Notice of Substantial Completion – [Project Name] – [Project Address] – Withholding Payment
Dear [Owner’s Name],
This letter is to formally notify you that the construction of [Project Name] located at [Project Address] has reached Substantial Completion as of [Date of Substantial Completion].
We have completed all work required under the contract documents, except for a few minor items outlined in the attached Punch List. We anticipate completing these items by [Date of Final Completion].
Please note that we will be withholding $[Amount] from the final payment. This is due to [Reason for Withholding Payment – e.g., incomplete work by a subcontractor, outstanding invoices for materials]. This amount will be released upon the successful completion of the outstanding items and verification of the invoices.
We request that you inspect the project and confirm your acceptance of Substantial Completion. Please contact us to schedule a convenient time for the inspection.
Upon your acceptance, we will prepare the final application for payment, in accordance with the contract.
We appreciate the opportunity to work on this project and look forward to its successful completion.
Sincerely,
[Your Name]
[Your Title]
In conclusion, a Substantial Completion Letter Sample is a key document in construction projects. It sets the stage for finalizing the project and protects everyone involved. Knowing how to create and understand these letters can save you headaches (and possibly legal issues) down the road. Whether you’re a contractor, owner, or just interested in construction, familiarizing yourself with the Substantial Completion process is a smart move.