Payment Bond
Payment bond definition. Learn how this bond protects subcontractors and suppliers by guaranteeing they will be paid even if the GC defaults.
Calculation Formula
Claim Amount = Unpaid Invoice + Interest Real Contractor Example
The GC fails to pay the plumber. The plumber makes a claim against the GC's payment bond to get their $15,000 without suing the homeowner.
Put This Into Practice
Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.