40 Discharge on completion

40 Discharge on completion

Once the guaranteed obligations are fulfilled, the responsibility of a surety is at an end. Where what is guaranteed is ‘completion’ by a contractor, it is a question of construction whether this requires a certificate of the contract administrator or whether factual completion will suffice1. In any event, a certificate of completion which is obtained by fraud on the part of the contractor will not discharge the surety, because the contractor’s honesty is one of the matters guaranteed2.