Which bond ensures that a contractor will complete the work as per the contract?

A performance bond is specifically designed to guarantee that a contractor will fulfill their obligations as outlined in the contract. It provides financial assurance to the project owner that the work will be completed according to the specified terms, conditions, and timelines. In the event that the contractor fails to meet these commitments, the surety company that issued the bond is responsible for compensating the project owner or ensuring that the work is completed satisfactorily by another contractor.

While a bid bond secures the contractor's commitment to sign a contract if awarded, and a payment bond ensures that subcontractors and suppliers will be paid, neither provides the same guarantee of successful completion of the project. A surety bond is a broader category that can encompass various types of bonds, including performance bonds, but it does not specifically denote the completion of work as stipulated in a contract. Thus, the performance bond stands out as the correct answer for ensuring that a contractor completes the work as required.