Labor and material claimants on public work generally cannot lien public property. What principal risk is a public-works payment bond intended to address?
- AThe contractor’s income tax
- BDesign errors by the architect only
- Nonpayment of qualifying claims
- DEvery delay penalty
Why C is correct
The best answer is: Nonpayment of qualifying claims. Because public property is generally not subject to ordinary mechanics liens, payment bonds provide a statutory payment remedy to eligible project participants. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.