When To Use
Use A312™ (Payment Bond) when the owner requires a surety guarantee that the contractor will fulfill all payment obligations to subcontractors and suppliers for material and labor.
What It Does
A312 (Payment Bond) protects the entire payment chain by obligating the surety to satisfy unpaid claims if the contractor defaults, up to the bond amount. The Payment Bond reduces the risk of liens and payment disputes on the property. The bond also obligates the surety to respond to the owner's requests to anticipate or prevent contractor payment defaults.
