In one sentence
A guaranty that construction will be finished, lien-free and on time, backing a construction loan beyond payment.
The longer version
Distinct from a payment guaranty, a completion guaranty obligates the sponsor to complete the project even if it costs more than the loan provides. It protects the lender from a half-built collateral.
Completion guaranties pair with budgets, contracts, and bonds as the construction risk package, and each piece becomes a closing checklist line.
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