Asked by ariana marie on Jun 13, 2024
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A payment bond protects the buyer against liens that might be granted to suppliers of material and labor to the bidder,in the event the bidder does not make proper payment to its suppliers.
Payment Bond
A type of surety bond that guarantees the payment of subcontractors, laborers, and suppliers on construction projects.
Liens
Legal claims or rights against property or assets that secure the payment of a debt or fulfillment of some obligation.
Suppliers
Entities that provide goods or services to another entity, typically in a business-to-business relationship.
- Understand the importance of performance bonds in guaranteeing adherence to contractual requirements.
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Learning Objectives
- Understand the importance of performance bonds in guaranteeing adherence to contractual requirements.
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