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Payment Bond

A Payment Bond guarantees that all subcontractors and suppliers of materials are paid on a construction project.

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Original price was: $212.60.Current price is: $103.58.

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Service Description

A Payment Bond is a type of surety bond that is typically used in construction projects. This bond ensures that subcontractors, suppliers, and laborers are paid for the work they perform on the project. In the event that the contractor fails to pay these parties, the payment bond can be used to compensate them.

Payment bonds are often required by law or contract for public construction projects. This is to protect the taxpayer’s investment in the project and ensure that all parties involved are fairly compensated.

The payment bond works by having the contractor purchase the bond from a surety company. The surety company then agrees to pay the subcontractors, suppliers, and laborers in the event that the contractor fails to do so. The premiums for payment bonds are typically paid by the contractor and are based on the size and complexity of the project.

Overall, the payment bond provides a level of protection for all parties involved in a construction project. It helps ensure that everyone is paid fairly for the work they perform, and helps protect the public investment in the project.

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