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.
Use the Completion Guarantee document if:
You're a guarantor who wants to insure a project.
You're a lender who wants a project insured before approving a loan.
You're a construction professional who wants to borrow money for a project.
You manage a construction company, guaranty office, or company that provides loans.
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