AIA Contract Series · ARE 5.0 Exam Prep · Updated May 2026
AIA G704 explained for ARE 5.0
A plain-language breakdown of the Certificate of Substantial Completion — what it is, what it triggers, who signs it, and why it is one of the most tested milestones on the ARE.
What is AIA G704?
The AIA G704 — formally titled Certificate of Substantial Completion — is the standard form the architect uses to certify that the project has reached substantial completion. It is one of the most important milestones in the construction process and triggers a series of legal and contractual consequences for the owner, contractor, and architect.
Substantial completion is defined in A201 as the stage when the work is sufficiently complete so the owner can occupy or use it for its intended purpose. It is not the same as final completion — punch list items may still remain. The G704 documents that milestone officially.
Why G704 appears on CE
G704 is most heavily tested on Construction & Evaluation because it sits at the heart of construction phase administration. It marks the transition from active construction to project closeout and affects payment, insurance, warranties, and liability.
CE
Construction & Evaluation
Covers the architect’s role in determining substantial completion, issuing G704, establishing the punch list, and managing the transition to final completion and closeout.
What G704 contains
The G704 form documents several key items that are frequently tested on the ARE:
Date of substantial completion
The official milestone date
G704 establishes the official date of substantial completion. This date is critical because it starts the clock on warranties, may trigger reduction or release of retainage depending on the contract terms, and establishes when responsibility for the occupied project shifts to the owner.
Punch list
Items remaining to be completed
G704 includes or references the punch list — the list of incomplete or deficient items the contractor must address before final completion. The architect typically develops or coordinates the punch list during the substantial completion inspection. The existence of punch list items does not prevent substantial completion from being certified.
Responsibility for utilities, security, and insurance
Allocated between owner and contractor
At substantial completion, G704 allocates responsibility for security, maintenance, utilities, and certain insurance obligations between the owner and contractor. The form documents when this allocation takes effect, which is why the date of substantial completion is so significant.
Time for completion of punch list
Deadline for remaining work
G704 establishes the time within which the contractor must complete the punch list items. This deadline is agreed upon by the owner, contractor, and architect and documented on the form.
Three signatures
Architect, owner, and contractor
G704 is signed by the architect, owner, and contractor. All three signatures are required for the certificate to be complete. This is one of the most tested procedural details on the ARE.
Substantial completion vs. final completion
These two milestones are frequently confused on the ARE. Here is the key distinction:
Substantial completion
Owner can use the project
The work is complete enough for the owner to occupy or use the project for its intended purpose. Punch list items may remain. G704 is issued. Retainage may be partially released depending on contract terms. Warranties begin. Responsibility for security, maintenance, utilities, and certain insurance obligations is allocated between owner and contractor.
Final completion
All work is done
All punch list items are resolved, all closeout documents are submitted, and G702/G703 support the payment process leading to final payment. The remaining retainage is released. The contractor’s obligations under the contract are complete.
What substantial completion triggers
- The warranty period begins — typically one year from the date of substantial completion under A201.
- Retainage may be reduced or partially released depending on the contract terms.
- Responsibility for security, maintenance, utilities, and certain insurance obligations is allocated between owner and contractor per G704.
- Liquidated damages stop accruing — if the contractor achieved substantial completion by the contract date.
- The one-year correction period for defective work begins under A201 Article 12.
- Primary responsibility for the occupied project typically shifts to the owner, while the contractor remains responsible for punch list and correction work.
Common exam traps
- Substantial completion is not the same as final completion — punch list items can still remain.
- G704 requires three signatures — architect, owner, and contractor.
- The warranty period starts at substantial completion, not at final completion.
- Liquidated damages stop at substantial completion, not at final completion.
- The architect determines substantial completion — not the owner or contractor alone.
- The owner can occupy the project at substantial completion even if punch list items remain.
Exam tip
When an ARE question mentions warranties, retainage release, insurance transfer, or liquidated damages stopping — the answer almost always connects to the date of substantial completion documented on G704. Memorize what this milestone triggers and you will answer a large number of CE questions correctly.
How G704 relates to other AIA contracts
G704 works alongside A201 (which defines substantial completion and the correction period), A101 (which sets the contract date for substantial completion and liquidated damages), and G702/G703 (which support the payment process leading to final payment). Understanding how these documents work together at the end of a project is one of the most heavily tested areas of CE.