Which of the following statements about Completion Bonds is true?

Completion bonds are crucial in construction and project financing, as they serve to guarantee that a project will be completed as scheduled, thereby protecting the financial interests of investors and lenders. The true aspect of completion bonds is that they ensure timely completion for financial backers. By securing a completion bond, a developer or contractor provides assurance to lenders and investors that funds will be available to complete the project, irrespective of potential issues that may arise during construction.

This is particularly important in project financing, where delays can lead to increased costs and uncertainty for all parties involved. By guaranteeing completion timelines, completion bonds help maintain confidence among stakeholders and reduce financial risk.

In contrast, other statements do not accurately reflect the purpose or characteristics of completion bonds. For instance, while completion bonds can enhance the likelihood of project success, they do not guarantee completion regardless of financial situation, nor are they limited only to large projects; smaller projects can also benefit from this financial instrument. Furthermore, completion bonds provide assurance about the completion of the project rather than covering project costs if it fails. Therefore, the unique attribute of completion bonds is their role in ensuring the timely completion of projects, safeguarding the interests of financial backers.