What assurance does a completion bond provide?

A completion bond primarily serves as a guarantee to financial backers that a project will be completed on time and in accordance with the established terms. When a project owner or contractor secures a completion bond, it provides a level of financial security and assurance that the necessary funds are in place to complete the construction, even if the original contractor fails to fulfill their obligations. This bond is crucial in mitigating financial risks for investors and ensuring that the project stays on schedule.

While it may involve quality standards or address financial arrangements, the primary function of a completion bond is centered on the timely completion aspect, reassuring stakeholders that their investments are safeguarded against unexpected delays or contractor failures that could jeopardize the project's conclusion.