Which of the following bonds guarantees the completion of a project in accordance with the terms of the contract?

The performance bond is the correct choice because it specifically ensures that a contractor will complete a project according to the contractual agreements established with the owner. This type of bond provides a financial guarantee that the obligations outlined in the contract will be met, including the quality and timeliness of the project completion.

If the contractor fails to fulfill these obligations, the performance bond protects the project owner by allowing them to claim financial compensation, often used to hire another contractor to complete the work or to cover any financial losses incurred due to the default.

This bonding mechanism is crucial in the construction industry as it provides a layer of security and peace of mind to project owners, enabling them to risk contracting large projects without excessive worry about potential contractor failures.

Other types of bonds, such as common law bonds, liability bonds, and payment bonds, serve different purposes that do not specifically focus on ensuring project completion as per the contract terms.