Certificate of Occupancy

Certificate of Occupancy

Certificate of Occupancy

The certificate is issued after inspections confirm code compliance. It is frequently a contractual milestone and may serve as evidence of substantial completion, though the two are distinct.

Temporary certificates permit occupancy with conditions.

Alternative Names:

CO|Occupancy Permit

Why it Matters?

The certificate and substantial completion are distinct, and a project may achieve one without the other, which matters because contracts frequently tie payment and risk transfer to different triggers. Temporary certificates with outstanding conditions create ambiguity about whether the milestone was met. Because the statute of repose frequently runs from substantial completion rather than the certificate, the distinction also affects when exposure closes.

Frequently asked questions

Is a certificate of occupancy the same as substantial completion?

Is a certificate of occupancy the same as substantial completion?

No. They are distinct milestones and a project may achieve one without the other, which affects payment and risk transfer.

What ambiguity do temporary certificates create?

What ambiguity do temporary certificates create?

Whether the contractual milestone was met, since occupancy is permitted subject to outstanding conditions.