an insurance policy purchased by the general contractor
A bond which promises to pay some or all of the persons who provide materials, labor, or services for prosecution of a contract.
A bond issued by a surety which guarantees payment of suppliers and subcontractors of a prime contractor.
A deposit, pledge, or contract of guaranty supplied by a successful bidder to protect the state against loss due to the bidder's failure to pay material suppliers and subcontractors. Acceptable forms of payment bonds are: cashier's check, certified check, or irrevocable letter of credit issued by a financial institution subject to the laws of Texas; a surety or blanket bond from a company chartered or authorized to do business in Texas; United States treasury bond; or certificate of deposit.
A payment bond guarantees that the sub-contractor (principal) will pay laborers and suppliers associated with the bonded project.
A type of surety bond wherein the surety company guarantees payment from the contractor to parties who furnish labor, materials, equipment and supplies for a contract.
See Labor and Material bond.
A bond which assures payments, as required by law, to all persons supplying labor or material for the completion of work under the contract. Also called labor and material bond.
guarantees that a contractor will pay for labor and materials used in the completion of the work undertaken in a contract. (See SURETYSHIP)
