A client wants a third-party commitment that a project will be completed as per contract...

A performance bond provides a third-party guarantee that the contractor will complete the project as specified in the contract and offers protection against financial losses if the project is not completed. This bond ensures that the client has recourse if the contractor fails to meet contractual obligations.

CTS Technology Specialist Reference

CTS study materials note that performance bonds are commonly requested in construction and large AV projects to provide clients with financial protection and assurance of project completion.