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.
Credit professionals may suppose they have nothing left to do to secure and maintain their security rights associated with such payment bonds
, let alone collect a copy of the payment bond
to ensure the information therein is accurate and provides the expected level of security.
: 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
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.
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.
Contractors may also be required to provide a payment bond
, which is a guarantee that the contractor will pay suppliers and subs.
Postal Service contract to expand a post office building, and it obtained a payment bond
from North American Specialty Insurance Co.