Labor and material payment bond

Labor and material payment bond,

Definition of Labor and material payment bond:

  1. 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.

Meaning of Labor and material payment bond & Labor and material payment bond Definition