What constitutes substantial completion of the Work?

There is substantial completion when the Contractor completes ninety five percent (95%) of the Work, provided that the remaining work and the performance of the work necessary to complete the Work shall not prevent the normal use of the completed portion.

The Owner shall be deemed to have recognized the substantial completion of the Work through:

• The approval of the Contractor’s billing for completing at least 95% of the Work; or
•    The issuance of a Certificate of Substantial Completion or equivalent document.  However, the date of this document shall not be controlling if substantial completion is shown to have been made at an earlier date, unless the Contractor accepts the certificate without taking exceptions thereto in writing within fifteen (15) days from receipt.

Notwithstanding this, the equipment, fixtures and utilities furnished and/or installed by the Contractor which the Contract requires to be test-run prior to acceptance shall be test-run successfully before the Work can be accepted as substantially completed. The Owner shall, without delay, cause the test-run of the Facility. Should the Contractor be unable to completely install or furnish and test-run the Facility through no fault of his, the Contractor shall automatically be entitled to an extension of Completion Time equal to the period of delay.

The Supreme Court has applied the 95% threshold to determine what constitutes substantial completion.in the absence of agreement to the contrary.

[1]

[1]

Transcept Construction and Management Professionals, Inc. v. Aguilar, G.R. No. 177556, 8 December 2010.