What does a bond typically guarantee in construction projects?

In construction projects, a bond primarily serves as a financial guarantee that the contracted work will be completed according to the terms of the contract. By securing a bond, the contractor assures project owners that if they fail to fulfill their obligations—such as inadequate performance, default, or financial instability—the bond issuer will step in to ensure completion or provide compensation for any losses incurred.

While the quality of materials and timeliness of payment are significant aspects of construction contracts, typically these are addressed through warranties and regulatory requirements, not through the bond itself. The essential function of a construction bond is to provide assurance regarding the successful completion of the project, which is why option C is the most accurate representation of what a bond guarantees.