During contract closeout, the architect issues a Certificate of Substantial Completion. A subcontractor discovers a defect in their work 8 months later. The owner demands the general contractor fix the defect immediately. What is the contractor's best course of action?

Option A: Refuse to fix it since substantial completion has passed

Option A is incorrect because substantial completion does not eliminate warranty obligations. The Certificate of Substantial Completion addresses project readiness for use, but warranty periods typically begin at substantial completion and extend for a specified duration (commonly one year). Refusing to address warranty claims based solely on substantial completion being achieved demonstrates a misunderstanding of these distinct contractual phases.

Option B: Fix the defect and bill the owner for the work

Option B is incorrect because if the defect falls within the warranty period and scope, the contractor is contractually obligated to remedy it at no cost to the owner. Billing the owner for warranty work would constitute a breach of contract. The contractor should only charge for work that falls outside warranty coverage or for improvements beyond the original scope.

Option D: Demand the subcontractor fix it at their own expense

Option D is incorrect because while the subcontractor may ultimately be responsible for the defect, the general contractor has a direct contractual relationship with the owner and cannot simply demand the subcontractor handle it. The contractor must first fulfill their warranty obligations to the owner, then pursue remedies against the subcontractor through their separate subcontract agreement.