Certificate of occupancy

A certificate of occupancy (CO) is a document from the local building department stating that a building meets code and may be occupied.

New buildings usually need a CO before anyone moves in. Major renovations, additions and a change of use, such as turning a garage into living space or a house into an office, may need one too. The rules are local, so check with the building department that issued the permit.

The CO is issued after the final inspections pass. Each trade usually needs its own final sign-off, such as building, electrical, plumbing and mechanical, plus fire or zoning in some places. A temporary CO may allow occupancy while minor items are finished.

Lenders, insurers and buyers often ask for the CO, and utilities may not be permanently connected without one. Without it, a client may not be able to close on a sale or move in, so delays fall hard on the schedule.

Plan for it from the start: keep inspections on schedule, fix failed items quickly and make sure the permit is in the right name. On many residential jobs, the final payment is tied to the CO or the final inspection.