How Does a Completion Bond Work
A Completion Bond Is a Contract That Guarantees Monetary Compensation If a Given Project Is Not Finished. It Provides Protection If the Contractor Runs out of...
A completion bond is a contract that guarantees monetary compensation if a given project is not finished. It provides protection if the contractor runs out of money or any other budgetary issues come up during the project.
How much does a completion bond cost?
The bond fee itself is negotiable—typically 3–5% depending on the risks as assessed by the completion guarantor. For these reasons, completion bonds are typically used on mid- to high-budget independent films.
Do banks always require a completion bond?
Lenders who are willing to write you a loan based on collateral such as pre-distribution sales, or by other means of debt financing, will almost always require a bond before any funds are released. … Financiers find reassurance in a bond, as a guarantee the film will be completed or they’ll be compensated.
Alexander Ross has covered the video game industry for a decade, writing deep dives on game design, esports tournaments, VR developments, and gaming culture.
