A project bond is intended to protect subcontractors and suppliers that provide labor or materials if they are not paid. Which bond serves that purpose?
Correct Answer
B) Payment bond
A payment bond protects qualified labor and material claimants from nonpayment. Other bonds address performance default, bid refusal, or warranty obligations.
Why This Is the Correct Answer
A payment bond protects qualified labor and material claimants from nonpayment. Other bonds address performance default, bid refusal, or warranty obligations.
Why the Other Options Are Wrong
Option A: Performance bond
Choice A gives Performance bond. Its specific error: it shifts the question into contract administration money flow.
Option C: Bid bond
In procurement and contracting, Bid bond is the wrong selection for Payment bond: the option answers a paperwork, payment, or bonding issue.
Option D: Warranty bond
The trap in D is Warranty bond. That selection is wrong because it shifts the question into contract administration money flow.
Memory Technique
File payment bond under a pay line: condition first, number or duty second, answer Payment bond.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Payment bond purpose" to confirm that A payment bond protects qualified labor and material claimants from nonpayment.
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