What’s the Difference Between a Surety Bond and Payment Bond Claim?
A payment bond is a type of surety bond that states that a contractor will pay subcontractors, laborers, and anyone else below them in the project chain according to the terms of their contract. This is the type of bond that you’re most likely to file a claim against, but there are two other commonly used types of surety bonds in construction: bid bonds, which guarantee that a contractor with a winning bid will take the job they bid on, and performance bonds, which ensure that the work is done properly and completely.