A type of performance bond, completion bonds helps ensure that the project is completed as per the specifications agreed to in the original contract. It ensures that the project will be finished, even if the contractor or developer runs out of money during the course of the job. This type of surety is common in a multitude of industries, including the construction industry and the film industry, and are generally attributable to what might be considered “major” projects. A completion bond provides financial backup in case the original funding is insufficient to finish the project.
Common in the case of a job that involves multiple investors, these bonds are also known as a “completion guarantee.” These are also common with any project that has complexities or potential risks that may come into play during the course of the work, and they are often a requirement in mortgage financing. Regardless of the project type, when a completion bond is in place, investors may be more likely to commit to a project, knowing that the work will be finished no matter what.
For more information or to apply for a completion bond, call Contractor Surety, or fill out our online form to set up a consultation. Our contractor bond specialists are always on hand to answer any questions you might have.