Certified Professional Public Buyer (CPPB) Practice Test

How does the doctrine of substantial completion apply to public agencies?

1. Allows acceptance of nonconforming work

2. Forces refunds on incomplete work

3. Requires immediate contract termination

4. Protects against price increases

The correct answer is: Allows acceptance of nonconforming work

The doctrine of substantial completion is a legal principle that signifies a project's completion to a point where it can be utilized for its intended purpose, even if some minor work remains unfinished. This concept provides a balance between the interests of public agencies and contractors, allowing agencies to accept work that may not fully conform to all contract specifications but is nonetheless functionally adequate. Accepting nonconforming work can be crucial for public agencies because it allows them to begin using a facility or service without waiting for every single detail to be fixed. This can be particularly important in situations where there is a pressing need for the facility or when delaying acceptance may incur additional costs or inconvenience to the public. As more comprehensive follow-up work can then take place without halting operations, this approach promotes efficiency and expedites project utilization. While the other options present alternatives concerning project completion and contractual obligations, they do not correctly reflect the purpose and function of the doctrine of substantial completion. By emphasizing acceptance of projects that are substantially complete, the doctrine supports the progress of public agencies while still holding contractors accountable for any remaining work that must be completed.