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At common law, substantial performance is an alternative principle to the perfect tender rule. Substantial completion means the project, or a portion of the project, is fit for its intended use.Generally, there needs to be full performance under the contract to satisfy the terms of the contract. If the contractor fails to reach this point in their performance, they will likely be barred from attempts to obtain the full contract price. 00 would be deemed to be substantially performed when it. What is an AIA Certificate of Substantial Completion? The doctrine of substantial performance recognizes that the contractor has not completed construction, and therefore is in breach of the contract. Define Substantial Performance. Define Substantial Performance" and "Substantial Completion. Substantial completion is the point where the owner can make use of the building or facility and ordinarily only minor work remains, i.e.