Which of the following is NOT a purpose of a performance bond?

A performance bond serves mainly to ensure that the contractor completes the project as per the contractual obligations. It provides a financial guarantee to the project owner that, should the contractor fail to fulfill these obligations—like timely completion or adherence to specified standards—the surety company will fulfill these requirements, often by hiring another contractor to complete the work.

The primary purposes of a performance bond include ensuring timely project completion, guaranteeing financial security to subcontractors, and providing assurance that the contractor will meet all contract conditions. However, covering unexpected project costs is not a role or purpose included within a performance bond's scope. Performance bonds are focused on performance and obligations rather than on managing or absorbing project costs that arise outside the agreed contract terms. Thus, stating that these bonds are meant to cover unexpected costs is incorrect, affirming that option regarding unexpected project costs is indeed not a purpose of a performance bond.