Public WorksQuestion 127 of 1632

On a public works project, the bond that guarantees the project will be completed according to the contract is the:

a.The payment bond given before work starts
b.The performance bond given at the award
c.The licence bond the CSLB requires
d.The bid bond filed with the offer

Explanation

The performance bond runs to the public agency and guarantees that the work will be completed according to the contract, with the surety arranging completion or paying damages on a default. The payment bond required by Civil Code §9550 before work starts protects subcontractors and suppliers instead, since they cannot lien public property. The CSLB licence bond is a condition of licensure and answers to injured parties generally, not to this contract. The bid bond guarantees only that the successful bidder will sign and post the other bonds.

Law Reference: Public Contract Code §20170; Civil Code §9550

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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
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