Payment Bond
What is a Payment Bond?
A Payment Bond is a type of Contract bond that ensures that subcontractors and suppliers are paid for their services.
Protects the project owner from potential liens and financial loss if the contractor fails to pay subcontractors and suppliers.
To secure the payment chain and prevent disputes over unpaid work.
Contractor’s financial and credit history, project details, and contract amount.
Often combined with performance bonds, the cost is typically 1-3% of the contract amount, depending on the contractor’s creditworthiness and project size.
