Completion Bond
Definition
- A form of insurance that guarantees that a project will be completed, even if those overseeing the project run out of money or if something unexpected (financial or otherwise) occurs during the project. Completion bonds, also known as "completion guarantees", are commonly used in the film and construction projects to make sure that an important project is completed no matter what happens, and this creates an incentive for investors to buy in because it helps ensure an return on investment.
Synonyms
completion guarantee, project completion coverage
Related Terms and Acronyms
- Covenantor — Definition,
- A person who promises to be responsible for the repayment of a loan.
- Fidelity Bond — Definition,
- Insurance that protects a business from losses due to employee fraud, such as theft, forgery or fraudulent trading.
- General Contractor — Definition,
- The person or company that performs work on a construction project, hires subcontractors and suppliers, or both.
- Guarantor — Definition,
- Someone who guarantees something.
- Self-Build Insurance — Definition,
- Insurance that covers a homeowner for problems involved in a construction project.
