What does Labor and Material Payment Bond mean? Read on to discover the definition & meaning of the term Labor and Material Payment Bond - to help you better understand the language used in insurance policies.
Labor and Material Payment Bond
Guaranty or security provided by a bonding or surety company to the owner (principal) of a construction project on behalf of a contractor. These bonds are issued usually with (and for the same amount as) performance bonds, and cover payment for all equipment, labor, materials, and services in the event the contractor fails to pay for them under to the terms of the contract.
We hope the you have a better understanding of the meaning of Labor and Material Payment Bond.