labor and material payment bond

labor and material payment bond

A bond of the contractor in which a surety guarantees to the owner that the contractor will pay for labor and materials used in the performance of the contract. The claimants under the bond are those having direct contracts with the contractor or any subcontractor.
References in periodicals archive ?
Liability of surety under labor and material payment bond claim by construction project staffing company is matter of first impression under New York law, and question is certified to New York's highest court.
Lower cost of construction is often a hidden benefit sureties provide to owners through the labor and material payment bond. This bond is "secured credit" to subcontractors, laborers and suppliers.
[sections] 713.23 labor and material payment bond (bond).
Depending on the circumstances, those adverse interests also may be proper parties to claim against the surety under a labor and material payment bond. There can be circumstances in which the language of the payment bond is broader than the statute, since both mechanic's lienors and trust fund beneficiaries appear to be limited as a class by the statutory definitions, whereas a payment bond can be written broadly enough for the benefit of all persons who have provided labor or furnished materials.
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