Cost: Depends on applic...
A payment bond covers the payment of subcontractors, laborers, and materials suppliers associated with the project. Payment bonds protect those supplying labor or materials to a particular bonded project. A performance bond guarantees the performance of the terms of a contract. These bonds frequently incorporate payment bonds (labor and materials) and maintenance bonds. Bonding aims to protect the project owner from financial loss should the contractor fail to perform the contract by its terms and conditions. A payment and performance bond can be purchased together at the same time at a discounted premium.
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