What does a 'Certificate of Release of Holdback' signify in the takeover procedure?

A 'Certificate of Release of Holdback' signifies substantial completion of work. In construction contracting, a holdback is a percentage of payment withheld until certain conditions are met, primarily to ensure that the contractor completes the project satisfactorily. When the project reaches substantial completion, this certificate indicates that the work is sufficiently done to meet contractual obligations, allowing for the release of the holdback to the contractor.

This milestone often means that the construction has been completed to a degree where the owner can occupy or utilize the building for its intended purpose, although final touches may still be in progress. The significance of substantial completion is crucial because it triggers various contractual timelines and obligations, such as the commencement of warranties and potential final payments.

The other options relate to different stages of the construction and payment process but do not capture the essence of what a 'Certificate of Release of Holdback' specifically denotes.