Everyone who builds it deserves to be paid for it.
The bond that protects the people who do the work
Payment bonds guarantee that the subcontractors, laborers, and material suppliers on a project are paid for what they furnish. They matter most on public work, where a mechanic’s lien cannot attach to government property — the payment bond is the only remedy an unpaid subcontractor has, and it is issued almost always alongside a performance bond.
What a payment bond guarantees
A payment bond protects downstream parties — subcontractors, laborers, and suppliers — rather than the owner. If the prime contractor fails to pay them, they can claim against the bond. On public projects this is critical: because you cannot place a mechanic’s lien on public property, the payment bond is the sub’s and supplier’s substitute remedy. It pairs with the performance bond.
Miller Act claim deadlines you need to know
On federal work, unpaid parties sue on the payment bond under the Miller Act instead of filing a lien. Two deadlines matter: second-tier claimants (suppliers to subcontractors) generally must give the prime written notice within 90 days of last furnishing labor or material, and any Miller Act suit must be filed within one year of the last day of labor or materials, in U.S. District Court. State Little Miller Act deadlines differ — confirm the exact rule for your project.
What a payment bond costs
Payment bonds are generally bundled with the performance bond at a single combined premium — the roughly 1%–3% of contract price quoted for performance bonds typically covers both, and many rate structures issue the payment bond at little or no additional charge. On federal work the payment bond amount equals the total contract amount and cannot be less than the performance bond.
Frequently Asked Questions
Who does a payment bond protect?
It protects the subcontractors, laborers, and material suppliers on a project — not the owner. If the prime contractor doesn’t pay them, they can claim against the bond. On public jobs it replaces the mechanic’s-lien remedy, which can’t attach to government property.
How much does a payment bond cost?
It’s usually bundled with the performance bond at one combined premium — roughly 1%–3% of the contract price for both — and often issued at little or no extra charge on top of the performance bond.
What is the deadline to make a claim on a federal payment bond?
Under the Miller Act, second-tier claimants generally must give the prime written notice within 90 days of last furnishing labor or materials, and suit must be filed within one year of the last labor or materials. State rules differ.
Do I need a payment bond and a performance bond?
On public work and most larger private projects, yes — they’re required together. Performance guarantees the job is finished; payment guarantees the subs and suppliers are paid.
How do I get a payment bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.