South Carolina Contractor License Exam — All Questions
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1 questions
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 license bond
- b.The bid bond
- c.The performance bond
- d.The payment 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)