Why does an owner require the general contractor to furnish BOTH a performance bond and a payment bond?

Giải thích

The performance bond protects the obligee against non-completion; the payment bond protects subcontractors, laborers, and suppliers, and so protects the owner indirectly from claims against the property — and under Civil Code §8600 an owner who files the direct contract and records a payment bond of at least 50 percent of the price before work begins may have lien enforcement restricted to the bond. (a) confuses security for performance with the contract that creates the obligation. (c) reverses cause and effect: bonds are underwritten on the contractor's credit and do not reduce insurance premiums. (d) is a separate statutory duty under B&P §7125 and Labor Code §3700.