Which best describes the difference between the payment bond and the performance bond on the SAME project?
a.The payment bond guarantees the schedule; the performance bond the budget
b.The payment bond protects subs from nonpayment; the performance bond protects the owner
c.The payment bond protects the owner from liens; the performance bond protects the surety
d.The payment bond pays the contractor; the performance bond pays the subcontractors
Explicación
The two bonds are issued together and answer different failures: the payment bond guarantees that subcontractors and suppliers are paid, and the performance bond guarantees to the owner that the work is completed according to the contract. (a) invents schedule and budget guarantees neither bond gives. (c) is half-right and therefore the strongest distractor — reduced lien exposure is a real benefit to the owner, but it is a consequence of subs being paid, and no bond exists to protect the surety. (d) reverses both beneficiaries.
Referencia Legal: Civil Code §8600 et seq.Practica las 1632 preguntas gratis — sin registro.
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Revisado por Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verificar)