What type of bond guarantees that a contractor will complete a project?

A performance bond is a type of surety bond that guarantees that a contractor will complete a project according to the contractual terms and conditions. It is essentially a risk management tool for the project owner, ensuring that if the contractor fails to fulfill their obligations—whether due to inability, insolvency, or lack of performance—the surety company providing the bond will step in to complete the project or compensate the project owner for the losses incurred.

The performance bond acts as a financial safety net for the project owner, protecting their investment and ensuring that the project can be completed, even if the original contractor cannot meet their responsibilities. This bond outlines the legal recourse if the contractor defaults, which gives the project owner confidence in moving forward with the project.

In contrast, the other types of bonds serve different purposes: the bid bond secures the contractor's bidding process, the payment bond ensures that subcontractors and suppliers get paid, and the maintenance bond guarantees the quality of work after project completion for a certain period. Thus, the performance bond is specifically aimed at guaranteeing project completion, making it the correct choice for this question.