Payment bond

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A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. [1] They are required in contracts over $35,000 with the Federal Government and must be 100% of the contract value. [2] They are often required in conjunction with performance bonds.

References

  1. ↑ "Business Dictionary". Archived from the original on August 17, 2010. Retrieved August 15, 2010.
  2. ↑ "Federal Acquisition Regulation Site" . Retrieved August 15, 2010.
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