What is the term used when the owner can use or occupy the project for its intended purpose?

The term that describes when the owner can use or occupy the project for its intended purpose is substantial completion. This milestone indicates that the construction project has progressed to a point where it is safe and usable for the owner, although some minor work may still need to be completed. The significance of substantial completion lies in its ability to allow project owners to start using the facility while final adjustments and detail work can be completed concurrently.

This phase is often crucial in project management, as it signifies a transition point where financial responsibilities change, particularly concerning project financing and occupancy. Following substantial completion, the owner typically assumes responsibility for maintenance and operations of the project, even if the contract has not yet reached its final completion status.

In contrast, concepts like operational readiness refer more broadly to a state of preparedness for normal use, which goes beyond just construction completion. Final acceptance involves the owner formally accepting the completed project after verifying that all contractual obligations have been met. Project handover encompasses the transfer of the project from the project team to the owner, which may include final acceptance but is a broader term that can involve financial, operational, and administrative transitions as well.