labor and material payment bond
Definition
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.
labor and material payment bond is in the Disaster Planning & Risk Management and General, Marine, & Life Insurance subjects.
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