A legal instrument used to guarantee the completion of a real-estate development according to specifications. It is more encompassing than a performance bond, which ensures that one party will perform under a contract on the condition that the other party performs.
A performance bond is a type of contract surety bond that guarantees the performance of contractual obligations by a contractor or service provider. It assures the client that the project or service will be completed as per the agreed-upon standards and terms.
