The performance bond on a public works project protects the:
Explicación
The performance bond names the public agency as obligee and guarantees that the work will be completed according to the contract; if the contractor defaults, the surety arranges completion or pays damages up to the penal sum. Unpaid subs and suppliers look instead to the payment bond required by Civil Code §9550 and to a stop payment notice. A surety bond is not insurance for the principal: it never indemnifies the contractor against its own defective work, and the surety may seek reimbursement from the contractor after paying. Delay damages against the agency are a contract claim, not a bond promise.
Referencia Legal: Public Contract Code §20170; Civil Code §9550Practica las 1632 preguntas gratis — sin registro.
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