Same project. Wrong bond. Expensive assumption.
Construction projects may involve multiple bonds.
When payment problems arise, it is easy to assume any bond provides the same protection.
Not quite.
A payment bond generally relates to unpaid subcontractors, suppliers, and claimants.
A performance bond generally relates to project completion obligations.
Same project.
Different purpose.
The Practical Takeaway
Knowing which bond matters can save valuable time when payment becomes a problem.