Practical Law Glossary Item 3-422-4325 (Approx. 3 pages)
Glossary
Completion Guaranty
A guaranty granted by a project sponsor or a contractor to ensure a facility or project achieves final completion. In the case of:
The project sponsor, it agrees to make subordinated loans or equity contributions to the project company under specified circumstances to complete construction of the project.
The contractor, an agreement to complete the project in accordance with agreed specifications. This obligation is often secured by a performance bond.