Payment bond
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
- ^ "Business Dictionary". Retrieved August 15, 2010.
- ^ "Federal Acquisition Regulation Site". Retrieved August 15, 2010.