A construction bond is a type of surety bond  (aka a guarantee) used by investors in large infrastructure or construction projects. To complete this construction bond definition, we can say the construction bond provides protection against disruptions or financial loss due to a contractor's failure to complete a project or failure to meet project specifications.

A construction bond can also be defined in its simplest form as an agreement or document to guarantee compliance, payment or performance of a contractual or legal obligation as part of a construction project.