What payment bond means
A payment bond guarantees that a contractor will pay its subs and suppliers on a job, often required on public work where liens are not allowed.
Where it shows up in your business
On public jobs, a claim against the payment bond takes the place of a mechanics lien, with its own deadlines. Track them the same way.
Work it out
- Money guide: Mechanics lien deadlines by state
- Money: Money guides for contractors