Surety Bonds
What Is a Payment Bond for Contractors?
A payment bond guarantees that the general contractor will pay all subcontractors, suppliers, and laborers. It protects the project’s supply chain from non-payment.
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What is a payment bond and who does it protect?
Payment bonds are almost always issued alongside performance bonds on public projects. Federal law (Miller Act) requires both for federal contracts over $150,000. State Little Miller Acts impose similar requirements on state-funded projects.
If you’re a subcontractor on a bonded project and the GC doesn’t pay you, you can make a claim against the GC’s payment bond. This is your primary financial protection on bonded public projects.
As a GC, the payment bond protects your business by satisfying legal requirements — and it protects your subs and suppliers, keeping your supply chain intact even if your project hits financial turbulence.
Need a surety bond fast?
Trade Safe helps contractors get bonded same-day in most cases. We work with multiple surety markets to find the best rate for your situation.