Payment bond, performance bond, contract bond, surety bond. These terms relate to when the property owner has asked the prime contractor to guaranty its work.
Payment and performance bonds are usually worth 100% of the contract sum. Anyone who works for the prime or supplies materials can claim against the payment bond.
The property owner, however, is the only one who can get to the performance bond. It is there in case the prime contractor defaults and a replacement contractor must take over and complete the work.
Filing a claim against the payment bond is relatively simple as long as you understand the filing requirements of the state where the project is located and have a bond claim form that is in compliance. Fill out our Account Referral Form to get started.
