Final Payment is made after which milestone?

Final Payment is made after which milestone?

• A. Substantial Completion
• B. Final Completion
• C. Design Approval
• D. Occupancy

Answer: (B)

Final payment is tied to the project being fully finished and closed out. This occurs at Final Completion, which means all work required by the contract is complete, all punch list items are resolved, all closeout documents (warranties, manuals, as-built drawings, lien waivers) are delivered, and the owner can accept the project as a whole. Substantial Completion marks when the project is usable for its intended purpose, not when everything is fully finished, so it doesn’t trigger the final payment. Design approval happens earlier in the project, and occupancy is typically associated with Substantial Completion or a separate permit scenario, not the final payment milestone. Therefore, Final Completion is the correct milestone for final payment.

Final payment is tied to the project being fully finished and closed out. This occurs at Final Completion, which means all work required by the contract is complete, all punch list items are resolved, all closeout documents (warranties, manuals, as-built drawings, lien waivers) are delivered, and the owner can accept the project as a whole. Substantial Completion marks when the project is usable for its intended purpose, not when everything is fully finished, so it doesn’t trigger the final payment. Design approval happens earlier in the project, and occupancy is typically associated with Substantial Completion or a separate permit scenario, not the final payment milestone. Therefore, Final Completion is the correct milestone for final payment.