The payment bond is one of the types of surety bond
wherein the surety company guarantees imbursement from
the service provider to parties who provide labor, materials,
equipment and supplies for a contract or agreement in
a type of bond.
At times also called a "labor and materials bond,"
this bond promises or guarantees that bills owed by
the service provider that paid as they come due. The
agreement may include into the performance bond. Alternatively,
in simple words we can say that it Guarantees that subcontractors
of the prime service provider or the contractor paid
for labor and materials.
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