Payment Bonds

 At JRG Surety, we can issue performance and payment bonds up to $1 million PLUS—based solely on credit. That means no financial statements are required, making it faster and easier for qualified contractors to get bonded and bid competitively. 

Who Does a Payment Bond Protect?

A Payment Bond is a surety guarantee that ensures subcontractors, suppliers, and laborers get paid in full and on time for the work they perform or materials they provide on a construction project. It protects these parties from non-payment or contractor defaults, ensuring they have a financial safety net if the contractor fails to meet payment obligations. Payment bonds are especially important for public works projects, where mechanics liens cannot be filed against government-owned property.

Project owners and general contractors require Payment Bonds to prevent financial disputes, work stoppages, and liens from unpaid subcontractors or suppliers. Without a payment bond, disputes over non-payment can delay projects, lead to legal battles, and increase costs for owners. Many public and private projects require payment bonds as a standard part of the contract to ensure that all workers and vendors involved in the project receive their rightful compensation.