payment bond

payment bond

A form of security purchased from an insurance company, which provides a guarantee that the contractor will pay the complete costs of labor, materials, and other services related to the project for which he is responsible under the contract for construction.
References in periodicals archive ?
Payment Bond Upon award of the contract, the successful bidder shall provide a payment bond in the amount of 50% of the total projected cost of the contract.
The act requires contractors working on such projects to provide a performance and payment bond.
For a claim related to a payment bond, which ensures payment for certain labor and materials furnished on a job, the surety's response usually involves requesting supporting documentation from the claimant or responding to a lawsuit if one is filed.
New York State Finance Law [section] 137 requires all municipalities and the State of New York, and its agencies, to require a statutorily compliant payment bond on all public improvements projects with a contract value in excess of $200,000.
NLBS Lien Navigator is a credit-professional's guide to notice, lien, payment bond and suit time requirements.
Payment Bond Surety Can Bring Action under Tucker Act (10)
Examples of topics are tender, completion, financing the principal, payment bond claims, bankruptcy, extra-contractual damages, indemnity, and performance bonds.
The breach-of-contract claim will first go to an arbitrator, but the other claims, for foreclosure on a mechanic's lien and enforcement of payment bond, will go ahead in court, plaintiff's attorney Steven S.
Court of Appeals for the 9th Circuit asking the court to expand the remedies available to subcontractors under a payment bond on a federal construction project.
When an owner does not want construction liens to be recorded against a particular property, it may require that the general contractor post an unconditional (traditional) private payment bond prior to construction.
The Act provides protection for specialty subcontractors by requiring the prime contractor on a federal project to provide a payment bond to ensure their payment.
A surety bond may also decrease the cost of construction, as suppliers may lower prices if they know they are protected by a payment bond.