Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and study resources. Gain confidence by accessing multiple-choice questions designed to enhance your knowledge and skills for the licensing exam.

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Which type of bond guarantees the completion of a construction project?

Performance bond
Bid bond
Contract bond
Payment bond

The correct answer is: Performance bond

A performance bond is specifically designed to guarantee the successful completion of a construction project according to the terms outlined in the contract. This bond protects the project owner by ensuring that if the contractor fails to fulfill their obligations—whether due to abandonment, non-performance, or other breaches—the bond will cover the cost to complete the project or rectify the failure. It provides financial assurance and mitigates risk for project owners, allowing them to proceed confidently with the contractor’s agreement. The other bond types serve different purposes: a bid bond secures the contractor’s commitment to enter into a contract if selected, while a payment bond ensures that subcontractors and suppliers will be paid for their work and materials. A contract bond is a broader category that encompasses both the performance and payment bonds but does not specifically guarantee project completion.