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 ?
The Bid Proposalwill Embody Statements To The Effect That The Bid Is Accompanied Byan Acceptable Bid Bond Or Cashier%s Check, In A Sum Not Less Than Five Percent (5%) Of The Greatest Total Bid Amount, Payable To The Owner, With The Understanding That If The Bid Is Accepted, The Bidderwill, Within 10 Days After Notice Of Award Enter Into A Contract And Must Be Able To Furnish Acceptable Performance Bond And Labor And Material Payment Bond From An Approved Surety Company In The Full Amount Of The Contrad For Such Work.
The successful bidder must comply with all relevant federal, state, and local regulations, permitting and licensing requirements and shall be required to furnish and pay for a satisfactory Performance Bond and Labor and Material Payment Bond in the amount of 100% of the total contract price.
Performance, Labor and Material Payment Bonds, and Certificate of Insurance will be required from the successful bidder