Ensures contract completion or compensation in the event of a default by the contractor. A project owner (often in development projects) seeks a contractor to fulfill a contract. In the event of the contractor defaulting, the surety company will be obligated to find another contractor to complete the contract or provide compensation to the project owner.
Global Definitions Database
Source: NCREIF PREA Reporting Standards | Date: 29 April 2020 | ID: D0265 | Version: 2