Because similar names do not automatically mean similar protection.
One of the most common public project misunderstandings is assuming a performance bond protects unpaid contractors, subcontractors, or suppliers.
Not exactly.
A payment bond generally relates to payment protection.
A performance bond generally relates to whether the contracted work gets completed.
Same project.
Very different purpose.
Why This Matters
If payment becomes a problem, pursuing the wrong bond—or assuming the wrong remedy applies—can waste valuable time.
And public project payment deadlines are not known for their flexibility.
The Practical Takeaway
If the issue is:
“We completed work and have not been paid”
→ payment bond conversations may be relevant
If the issue is:
“The contractor failed to complete the project”
→ performance bond conversations may be more relevant
Same project.
Different problem.
Different path.