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HOW IT WORKS
How it works
If you're a contractor or a project owner who wants to make sure everyone gets paid, a Payment Bond is your tool. Nothing's worse than not getting paid for a job well done. You can sidestep that risk with the help of 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. Contractors, subcontractors, and material suppliers often only get paid after a project is completed. But what happens if the owner doesn't pay? Or goes bankrupt? It's smart to protect yourself. With a Payment Bond, a third party—such as a surety company—takes on that risk. As a contractor, knowing that you don't have to worry about payday lets you focus on getting the project done. A Payment Bond can be your firewall so you don't get burned.
Other names for this document: Surety Bond, Payment Bond Form
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