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Payment Bond

You never know what will happen when you begin a new project, which is why many construction projects require owners and contractors to sign a Payment Bond. If you're a contractor or a project owner... Read more

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Making a Payment Bond

  • What is a Payment Bond?

    You never know what will happen when you begin a new project, which is why many construction projects require owners and contractors to sign a Payment Bond. If you're a contractor or a project owner who wants to make sure everyone gets paid, a Payment Bond is your tool.

  • When can I use the Payment Bond document?

    You may use the Payment Bond document if:

    • You own a surety company.
    • You're a project owner and want to make sure contractors and suppliers get paid.
    • You're a contractor, subcontractor, or supplier starting a new project.
  • What is a payment performance bond?

    A performance bond ensures that a contractor successfully completes a project. It is issued by a bonding company or bank and is used to protect the owner when the terms of a contract aren't successfully executed. If contractual obligations are not met, the surety company will pay the claim.

    A payment bond is usually issued alongside a performance bond and guarantees that laborers, material suppliers, and contractors are paid according to the terms of the contract.

  • How do I get a payment and performance bond?

    Payment and performance bonds are issued by a surety bonds company. Surety issuers can be bond producers, general insurance companies, and speciality surety companies.

  • What is a construction bond?

    A construction bond ensures that any construction work being done is in accordance with the terms of the agreement. They also protect the project owner and contractor(s) against non-payment and project incompletion.

    The parties to a construction bond are typically the project owner, surety company, and contractor(s).

  • What is a bonding?

    Bonding ensures that a customer is protected if anything goes wrong. In the event that the customer faces a problem, they can file a claim against the company. If the claim is valid, then the bond purchased by the company will cover the cost of the claim.

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