South Carolina Contractor License Exam — All Questions
AllBusiness Organization & LicensingEstimating & BiddingContracts & Contract LawProject Management & SchedulingFinancial Management & AccountingSafety & OSHAEmployment & Labor LawBuilding Codes & Permitstopics.ctsc_contracts_agreementstopics.ctsc_estimating_biddingtopics.ctsc_financial_managementtopics.ctsc_project_managementtopics.ctsc_labor_employmenttopics.ctsc_taxtopics.ctsc_lienstopics.ctsc_business_managementtopics.ctsc_insurance_bondingtopics.ctsc_environmentaltopics.ctsc_safety_recordkeeping
1 questions
topics.ctsc_insurance_bonding
On a project with the three standard construction bonds, which bond protects subcontractors and suppliers if the prime contractor fails to pay them?
- a.The payment bond✓
- b.The bid bond
- c.The performance bond
- d.The license bond
The payment bond guarantees that the prime contractor pays its subcontractors and suppliers, so it protects them. A bid bond protects the owner if a low bidder backs out; a performance bond protects the owner by assuring the work is completed.Surety bonds (payment bond protects subs and suppliers)