What type of bond may be purchased to protect subcontractors, vendors, and workers on a public property project?

A payment bond is specifically designed to protect subcontractors, vendors, and workers on a project by ensuring that they are compensated for their labor and materials used on the job. When a payment bond is in place, it guarantees that funds will be available to pay all parties involved in the construction contract if the general contractor fails to fulfill their payment obligations.

This type of bond is essential in public property projects because it helps maintain the financial stability of all parties working on the project, ensuring that subcontractors and suppliers can rely on receiving payment for their contributions. In this context, a payment bond is a crucial safeguard in the construction industry, promoting fairness and reducing the risk of financial loss for those who are vital to the project's success.

In contrast, performance bonds primarily focus on the completion of the project according to the contract specifications, while surety bonds serve a broader purpose that may include both performance and payment. Completion bonds are more concerned with ensuring that a project will be finished, rather than addressing the financial security of individual workers and subcontractors.