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What type of bond guarantees that if a contractor goes bankrupt on a project the surety will pay the necessary amount to complete the job
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What type of bond guarantees that if a contractor goes bankrupt on a project the surety will pay the necessary amount to complete the job

User NWard
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Answer: Payment bond.

Step-by-step explanation:

A payment bond is a type of guaranteed payment provided for a contractor which ensure that all subcontractors, suppliers, workers etc involved in a project will be duly paid. Payment bond usually comes along with performance bond especially in the construction industry, and it is obtained before the commencement of a construction project. This serves as a form of protection for subcontractors.

User Amol Brid
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