A payment bond ensures that a contractor’s material suppliers and subcontractors are paid according to contract. Payment bonds are required on public projects where mechanic's liens are not allowed. A payment bond is a type of contract bond that is often packaged with a performance bond by many sureties. The need for a performance bond and payment bond often arises out of a contractor successfully winning a public job opportunity and posting a bid bond in the process.
Pursuing or defending claims on performance and payment bonds often involve complex procedural and substantive legal issues. The attorneys at Hunt Ortmann have dealt with numerous payment and performance bond claims and understand how to properly address and resolve such claims.