payment bond
Definition
Deposit or guaranty (usually 20 percent of the bid amount) submitted by a successful bidder as a surety that (upon contract completion) all sums owed by it to its employees, suppliers, subcontractors, and others creditors, will be paid on time and in full.
email to a friend
print this definition
cite this definition
link to this page
payment bond is in the Agreements & Contracts, Banking, Commerce & Finance and Purchasing & Procurement subjects.
payment bond appears in the definitions of the following terms: contract bond and contract payment bond
payment bond appears in these other terms: labor and material payment bond, advance payment bond
This content can be found on the following page:
http://www.businessdictionary.com/definition/payment-bond.html