Contracts
What is a completion bond vs. a performance bond in construction?
AThey are the same document
BA completion bond guarantees a project will be finished; a performance bond guarantees a contractor will perform per contract✓ Correct
CPerformance bonds are only for subcontractors
DCompletion bonds are required by Ohio law; performance bonds are not
Explanation
A completion bond (often used in new home sales) guarantees the project will be completed. A performance bond guarantees the contractor will perform in accordance with the contract. Both protect owners from contractor default.
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