Labor and Material Payment Bond


A contract between a contractor and a surety company in which the surety company in which the surety, in return for a premium paid by the contractor, agrees to pay subcontractors, laborers, and material suppliers amounts due to them foe their materials and services under the terms of their contractual arrangements with the contractor, should the contractor default in his or her payment obligations to them.


© University of Colorado, 1997. All Rights Reserved.