Definition of Completion bond:
An investment fund set up for individuals or corporations that have set schedules to finish projects but may not have enough funds to see the projects to the end. This type of bond is common practice with building and entertainment industries that are based on production schedules.
A completion bond is also known as a completion guarantee.
A completion bond is a contract that guarantees monetary compensation if a given project is not finished. It provides protection if the contractor runs out of money or any other budgetary issues come up during the project. Many businesses use completion bonds, including films, video games, and construction projects.
How to use Completion bond in a sentence?
- Completion bonds are used for construction projects, in the entertainment industry, and for mortgages.
- A completion bond provides more coverage than a performance bond.
- A completion bond is a financial contract that guarantees monetary compensation if a given project is not finished.
- Completion bonds are often used for complex projects involving large sums of money or multiple investors.
Meaning of Completion bond & Completion bond Definition