AskCodeMan

Codeman,

I'm in need of a good solid definition of the term "substantially complete" or even "substantial completion as it pertains to the habitability of a residential structure. ICC does not define the term.

Thanks Code Man,

Aaron

Hi Aaron,

"Substantially complete" means:
- If a building is intended to be constructed to the point that it may be occupied, the building must be suitable for occupancy with all inspections complete and all work complete, other than minor punch-out work. The building does not need to be "complete and perfect" in that all punch-out work has been completed, but all systems and components must be ready for use, not only within and part of the building itself, but also including related outdoor areas such as walkways, parking areas, grading and landscaping, and the like.
- If a building is intended to be constructed to a point from which the client will finish out the building, then the building must be completed to, have all inspections to and all work complete to, the agreed upon point, and which will allow the client to proceed with their work from that point forward.

This is what Florida says about when a building is "substantially complete", this is from the State Statutes: (underlining and bold are mine)
- TITLE XIV
- - TAXATION AND FINANCE
- - - CHAPTER 192
- - - - TAXATION: GENERAL PROVISIONS
- - - - - 192.042 Date of assessment.--All property shall be assessed according to its just value as follows:
- - - - - - (1) Real property, on January 1 of each year. Improvements or portions not substantially completed on January 1 shall have no value placed thereon. "Substantially completed" shall mean that the improvement or some self-sufficient unit within it can be used for the purpose for which it was constructed.
- - - - - - (2) Tangible personal property, on January 1, except construction work in progress shall have no value placed thereon until substantially completed as defined in s. 192.001(11)(d).
- - - - - (3) Intangible personal property, according to the rules laid down in chapter 199.
- - - - - History.--s. 4, ch. 70-243; s. 57, ch. 80-274; s. 9, ch. 81-308.

Here is an article which expands on what I've posted above, and supports what I'm saying: http://www.hklaw.com/id24660/Publicatio ... ntid49718/

Codeman