{"id":891467,"date":"2016-12-16T12:01:11","date_gmt":"2016-12-16T19:01:11","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=891467"},"modified":"2016-12-16T12:01:11","modified_gmt":"2016-12-16T19:01:11","slug":"construction-law-know-substantial-performance","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-law-know-substantial-performance\/","title":{"rendered":"Construction Law \u2013 What to Know About Substantial Performance"},"content":{"rendered":"

J. Norman Stark<\/a> | December 12, 2016<\/p>\n

In every construction contract and construction project, the term \u201csubstantial performance\u201d is frequently referred to as \u201csubstantial completion\u201d. This term, derived from custom and judicial precedent, rather than statutes, provides that when the work has been completed, even imperfectly, such performance warrants payment. In construction claims, most legal decisions have held that no one should be denied payment for work performed less than perfectly.<\/p>\n

Construction Law Definition of Substantial Performance<\/h2>\n

\u201cSubstantial performance\u201d has been defined as: \u201c\u2026that performance of a [construction] contract which, while not full performance, is so nearly equivalent to what was bargained for, that it would be unreasonable to deny the promisee [contractor] the full contract price subject to the promissor\u2019s [owner\u2019s] right to recover whatever damages may have been occasioned . . . by the promisee\u2019s [contractor\u2019s] failure to render full performance.\u201d<\/p>\n

The doctrine of substantial performance is based upon the legal principles of equity, which requires: \u201c\u2026doing that which should, in all fairness, be done\u201d. It seeks to prevent an owner from becoming unjustly enriched where the construction contractor has substantially performed its contractual obligations, and the owner attempts to withhold or avoid timely payment of the contract sums when due, because of minor items that may require correction or completion.<\/p>\n

Where the contractor has performed work whereby the construction project is fit for occupancy and use, the contractor has complied with substantial performance<\/strong> of the construction contract. Even where minor or incomplete items remain for \u201cpunch listing\u201d repairs or touch-up, the contractor is entitled to payment, without unreasonable deductions or punitive payment retention. Owners may not rely upon minor deficiencies to deny prompt payment under the law.<\/p>\n","protected":false},"excerpt":{"rendered":"

J. Norman Stark | December 12, 2016 In every construction contract and construction project, the term \u201csubstantial performance\u201d is frequently referred to as \u201csubstantial completion\u201d. This term, derived from custom and judicial precedent, rather than statutes, provides that when the work has been completed, even imperfectly, such performance warrants payment. In construction claims, most legal… Continue reading Construction Law \u2013 What to Know About Substantial Performance<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[72,9835,9878],"class_list":["post-891467","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-construction-contracts-2","tag-substantial-completion","tag-substantial-performance","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nConstruction Law \u2013 What to Know About Substantial Performance - 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