A Performance Bond guarantees that the contractor will complete the project according to the contract plans and terms. True or False?

A Performance Bond is indeed designed to guarantee that a contractor will fulfill their contractual obligations, specifically completing a project in accordance with the contract plans and terms. The bond functions as a form of security for the project owner, ensuring that if the contractor fails to complete the project or meets the contractual standards, the owner can seek financial reimbursement or hire another contractor to complete the work. This serves to provide peace of mind and financial protection to the project owner, as the Performance Bond essentially backs the contractor's commitment to adhere to the agreed-upon specifications and timelines outlined in the contract.