§ 8030 Payment Bond Definitions

• •A 'payment bond' is like a promise to pay money if someone doesn't do their job right in a big project.
• •In some big building projects, the boss has to get this 'payment bond' to make sure workers and suppliers get paid.
• •There are two different rules for when this 'payment bond' is needed, depending on the type of project.

Imagine a company is building a new school.

The company must get a 'payment bond' to promise that all the workers, like electricians and plumbers, will get paid even if the company runs out of money. If the company doesn’t pay them, the bond will cover the money owed.