Contract Bonds
Completion Bond
Security assuring that a project or undertaking will be carried through to completion.
Overview
A completion bond assures the obligee or financier that the project will be completed in accordance with an agreed plan and schedule.
It is used in development, financed projects, and in undertakings where the funder requires assurance beyond ordinary performance security.
Purpose
- Assures completion of a financed or licensed project.
- Protects lenders and buyers from stalled developments.
- Supports regulatory undertakings to complete works.
Typical uses
- Real estate development commitments
- Financed infrastructure or energy projects
- Licensed developments requiring completion undertakings
Who normally requires it
- Developers with completion undertakings
- Project companies under loan covenants
- Contractors on turnkey developments
Parties involved
- Principal — the contractor or supplier applying for the bond
- Obligee — the project owner or procuring entity protected by the bond
- Surety — the authorized Philippine insurance company that issues the bond
Typical documentary requirements
- Accomplished bond application form with obligee and transaction details
- SEC or DTI registration, Articles of Incorporation, or business permit
- BIR Certificate of Registration and latest filed tax return
- Audited financial statements for the last two to three years
- Valid government IDs of signatories and board or partnership authority
- Project plan, budget, and completion schedule
- Loan or development agreement showing the completion requirement
Final requirements depend on the obligee and the issuing insurance company. See the full requirements guide.
Typical application process
Step 1
Submit the application
Open an application in your SuretyPH portal and enter the obligee, transaction, and bond details.
Step 2
Upload requirements
Follow the guided checklist and upload each document securely to your application file.
Step 3
Pre-assessment
We review the file for completeness and endorse it to an authorized issuing insurance company.
Step 4
Quotation
The insurer evaluates the submission and issues a quotation covering premium, fees, and any collateral requirement.
Step 5
Payment and issuance
Once the quotation is accepted and the premium is settled, the insurer issues the bond for release or delivery.
Risks typically covered
- Abandonment of the development
- Failure to complete within the agreed schedule
- Cost to complete borne by the lender or owner
Frequently asked questions
How is it different from a performance bond?
A performance bond secures a contract with an owner; a completion bond focuses on carrying the whole project through to completion, often for a lender or regulator.
Are completion bonds always available?
Availability depends on project risk and the underwriting appetite of the issuing insurance company.
More answers on premiums, collateral, and timelines are in the general FAQs.
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SuretyPH is a digital platform for surety bond information, inquiries, requirements and request tracking. It does not underwrite, approve, bind, issue, or guarantee any insurance policy or surety bond. Evaluation, underwriting, approval, pricing and issuance are undertaken by the applicable licensed insurance company.