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HOW IT WORKS
How it works
When you lend money for a construction project, you want to insure that it will be finished. A Completion Guarantee is a useful way to guarantee that the project will be realized. Perhaps you're a lender who provides loans to construction workers. Or you're a guarantor who is insuring a project. Maybe you're even the contractor who needs a loan. A Completion Guarantee is an important tool to minimize financial risk for lenders.
With a Completion Guarantee, a "Guarantor" unconditionally and absolutely guarantees to the "Lender" that if the "Borrower" fails to complete the project, as required by the Construction Loan Agreement, that they (the Guarantor) will complete it. A Completion Guarantee can insure that if the project isn't completed, the lender is protected from risk.
Other names for this document: Completion Bond, Legal Completion Guarantee
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