A payment bond is a surety bond issued to contractors that guarantees that the contractor will pay their subcontractors, material suppliers, and laborers in a timely fashion. These bonds are required of contractors in all states, most often for federal and state construction projects. Many private construction projects also require contractors to be bonded. Payment bonds also serve as protection for subcontractors, and offer them legal recourse against contractors who do not fulfill their side of the contract terms.
Allstar Surety offers Payment bonds for your contractors or subcontractors. These bonds are obtained prior to the commencement of a construction project guaranteeing that the labor and materials provided by subcontractors and suppliers to a general contractor will be paid for in due time and in compliance with the contract. These bonds also guarantee that payments for labor and material will comply with state and federal laws and regulations.
Payment bonds are an agreement between the obligee requesting the bond (the subcontractor, supplier or laborer), the principal who obtains the bond (the contractor) and the surety bond company
Allstar Surety provides payment bonds to contractors of all credit types. Contact a Surety expert today to learn more.