Payment bond

For payment bonds on U.S. Government construction contracts, see Miller Act.
For payment bonds on state government construction contracts, see Little Miller Act.

A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid.[1] They are required in contracts over $30,000 with the Federal Government and must be 100% of the contract value. [2] They are often required in conjunction with performance bonds.

References

  1. ↑ "Business Dictionary". Retrieved August 15, 2010.
  2. ↑ "Federal Acquisition Regulation Site". Retrieved August 15, 2010.
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