Final answer:
A Payment bond guarantees that subcontractors and material suppliers are paid, ensuring work is delivered free of liens. The correct option is B.
Step-by-step explanation:
The type of bond that guarantees that a principal will complete and deliver work free of liens is a Payment bond.
A Payment bond is designed to ensure that subcontractors and material suppliers are paid for their work and materials, which in turn ensures that no liens are placed on the completed work due to non-payment.
This differs from a Performance bond, which ensures the project will be completed according to the terms of the contract, and a Contract bond.
which is a general term that can include various types of bonds including payment and performance bonds. The correct option is B.