Which of the following is a common characteristic of performance bonds?

Performance bonds are designed specifically to guarantee that a contractor will fulfill their obligations as outlined in the contract. One of their primary functions is to ensure that the project is completed in accordance with the agreed-upon specifications and standards. If the contractor fails to meet these requirements, the performance bond provides a financial mechanism to compensate the project owner, which is a safeguard intended to protect against non-performance or substandard work.

While performance bonds often do have a financial component, their unique characteristic lies in their role as a security measure ensuring compliance with contract terms. This characteristic distinguishes performance bonds from other forms of financial support, as they focus explicitly on the performance aspect instead of merely providing funds.

Other options might relate to certain aspects of performance bonds but do not capture their primary purpose as effectively as ensuring completion according to project specifications.