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This document outlines the obligations and responsibilities of the Principal and Surety under both the Performance Bond and the Payment Bond concerning a contract with the County of Wayne, Michigan. The bonds guarantee that the Principal will fulfill the terms of the contract and pay all debts related to labor and materials supplied for the project.
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What is performance bond and payment?
A performance bond is a financial guarantee provided by a third party that ensures the contractor will fulfill their contractual obligations. Payment bonds guarantee that the contractor will pay all subcontractors and laborers involved in the project.
Who is required to file performance bond and payment?
Typically, contractors working on public projects or large contracts are required to file performance and payment bonds, as mandated by law or the terms of their contract.
How to fill out performance bond and payment?
To fill out a performance bond and payment form, provide details such as the project name, contractor information, bond amount, and specific obligations. Ensure all parties involved sign and date the document.
What is the purpose of performance bond and payment?
The purpose of performance and payment bonds is to protect the project owner by ensuring that the contractor meets their obligations and that subcontractors are paid for their work.
What information must be reported on performance bond and payment?
Information that must be reported includes the names of the principal (contractor), surety (bond issuer), the project description, bond amount, and the dates of execution.
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