What is the first step in the Order of Take Over?

The first step in the Order of Take Over is the determination of substantial performance. This term refers to a critical point in the construction process where the project is sufficiently complete in accordance with the contract, allowing the owner to occupy or utilize the work for its intended purpose even if minor deficiencies remain.

Reaching substantial performance is essential as it triggers various contractual obligations, including the reduction of holdbacks, the issuance of the certificate of substantial performance, and the start of the warranty period. This step acknowledges that while the project may not be fully complete, it meets the essential criteria set forth in the contract, signifying that it is fit for use as intended.

Substantial performance also initiates the process of final inspections and the subsequent steps towards complete contract fulfillment, such as the final certificate of payment and total completion, which are actions that follow and cannot occur before this initial determination.