Utah General Contractors - Business and Law Practice Exam

Which of the following best defines final completion for a construction project?

1. All financial obligations are settled

2. No inspections are required

3. All permits have been issued

4. Final inspection is passed, no substantial work remains, and certificate of occupancy is issued

The correct answer is: Final inspection is passed, no substantial work remains, and certificate of occupancy is issued

Final completion for a construction project is best defined as the point at which the final inspection is passed, no substantial work remains, and the certificate of occupancy is issued. This indicates that the project has met all necessary requirements and standards set forth by relevant authorities, confirming that it is ready for use. Final completion typically means that the project has been fully inspected and deemed safe for occupancy or operation, signifying the end of the construction process and the beginning of its functional use. The other options do not encompass all the necessary criteria included in the definition of final completion. Settling all financial obligations or issuing permits are important aspects of a project but do not reflect the physical state of the construction or its readiness for use. Similarly, the absence of required inspections alone does not guarantee that the project is complete or safe. Hence, the comprehensive nature of the definition in the selected option more accurately describes final completion.