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 ?
On federal projects, the rules are the same in every state when it comes to using and enforcing your rights against the Miller Act payment bond. There are strict limitations on who has access to pursue the Miller Act payment bond.
As the above amply illustrates, the determination of whether a party is a subcontractor or materials supplier for purposes of a claim on a Miller Act payment bond is a complicated and fact-intensive one.
From the point of view of surety companies, these are: 1) the Bidder's Bond; 2) the Performance Bond; 3) Warranty Bond for the procurement of infrastructure projects; 4) Advance Payment or Down Payment Bond under Section 4 of Annex 'E' of the implementing rules and regulations (IRR); and 5) Retention Money Bond under Section 6 of Annex 'E'.
After the project is awarded, the contractor will be required to post a performance and payment bond. This effectively guarantees all of the contractor's obligations under the contract for an amount equal to the contract amount.
Payment Bonds: A payment bond is for the benefit of those supplying labor and materials to a construction project.
The act requires contractors working on such projects to provide a performance and payment bond. That's because the act mandates that municipalities' and counties' cost savings efforts are measurable and verifiable.
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.