Which type of bond provides assurance to financial backers for project completion?

A completion bond provides assurance to financial backers that a project will be finished as specified. This type of bond guarantees that the contractor or developer will complete the construction or project work according to the terms laid out in the contract, thereby reducing the risk for investors or lenders. By securing a completion bond, financial backers can be confident that their investment will not be lost due to project delays or non-completion.

In contrast, performance bonds focus on the contractor's ability to perform the work satisfactorily, while payment bonds ensure that subcontractors and suppliers will be paid for their work. Maintenance bonds typically relate to the quality of workmanship after the project is completed, covering a specific maintenance period. Each of these bonds serves different purposes, but a completion bond is specifically designed to provide financial assurance regarding the overall completion of a project.