What is indicated by the term "Substantial Completion" in a construction project?

The term "Substantial Completion" in a construction project refers to a stage where the project is sufficiently complete, meaning it is ready for use or occupancy, although minor details may still need to be finished. Typically, this involves the completion of all main construction work, with the project being functional and the essential systems operational.

Choosing the option that indicates both the completion of minor punch-list items and that all equipment is tested and operational effectively captures the essence of substantial completion. Minor punch-list items usually refer to those small finishing tasks that do not impede the use of the project. Meanwhile, ensuring that all equipment is tested and operational confirms that the primary functions of the project are in place and working as intended. Thus, both of these aspects align with the definition of substantial completion, making this option the most accurate representation of what it entails in a construction context.