Completion bond

A completion bond (sometimes "completion guarantee") is the financial instrument by which a third-party guarantor — most commonly Film Finances — undertakes to ensure a production is delivered. If the production goes over budget or over schedule beyond agreed tolerances, the bond steps in.

What the bond covers

• Cost overrun (over the agreed budget + contingency)
• Schedule overrun (delivery to the agreed date)
• Producer default

What the bond requires

• Vetted budget + schedule
• Vetted key personnel (director, DoP, lead cast)
• Approved insurance
• Take-over rights (bondco can step in and complete if needed)
• Monthly cost reports (the bondco watches your cost report cycle)

Why financiers insist on a bond

Most non-equity financiers — sales agents, gap lenders, certain soft money — require a completion bond as a pre-condition to drawdown. The bond converts the producer's promise to deliver into a financial instrument the financier can rely on.

When a bond isn't required

• Very low-budget productions with risk-tolerant financiers
• Productions financed entirely by recoupable equity
• Some public-funder-only productions

In Togra

/completion-bond.php per project tracks bond status, takeover risk indicators (cost variance + schedule slip vs bond tolerances), monthly report submission deadlines to the bondco.