Payment Bonds: Protection for Subcontractors


Department:	Construction Bonds
Type:	Brochures
By Marla Mcintyre The payment bond assures that the principal will promptly pay certain subcontractors, material suppliers and laborers. The obligee pays for the bond by including its cost in the contract price. On private projects, subcontractors and material suppliers may file liens against the property. With a payment bond, if the contractor fails to pay these subcontractors, the surety will pay, thus protecting the owner’s property. Because liens are notallowed on public projects, the payment bond meets the owner’s equitable obligation to persons who worked on the project. Download to read more.

Cross Financial Corp., a Maine corporation headquartered in Bangor, Maine, operates a network of wholly-owned subsidiary insurance agencies with locations in Maine, New Hampshire, and Massachusetts. Each office is a separate legal entity, is separately managed and is independently operated as a wholly owned subsidiary of Cross Financial Corp., Bangor, Maine.