Public WorksQuestion 1599 of 1605

The performance bond on a public works project protects the:

a.Subcontractors' wages only
b.Contractor against its own defective work
c.Contractor's profit
d.Public agency (obligee) by guaranteeing the contractor completes the project per the contract

Explanation

The performance bond on a public works project protects the public agency (the obligee) by guaranteeing completion of the work per the contract. If the contractor defaults, the surety arranges completion or pays damages up to the bond amount.

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