Definition of "Completion bond"

Beth Ortu real estate agent
Beth Ortu, Real Estate Agent Coldwell Banker Residential Brokerage

Bond given by a building contractor to a public authority and guaranteed by a third party, usually a bonding company, that a contracted construction project will be completed within the contract period. Building contractors must be qualified in terms of meeting specific experience and achievement qualifications. Should the building contractor default, the bonding company guarantees to compensate for financial damages.

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