THE LAWS OF CREDIT AND COLLECTIONS
Home Up CONTENTS

 

e-mail

Home Up CONTENTS

                 PAYMENT BONDS

When you drop-ship goods to a construction site or perform engineering services at the site, the contractor frequently obtains a payment bond to protect you, especially if the owner of the real estate, the end customer, is a Federal, State, or City entity or agency.

You should ask for a copy of the Payment Bond before you begin to provide services and ship goods.  the contractor becomes much les cooperative after your customer or the contractor goes out of business or files bankruptcy and you want to file a claim against the surety company that is liable to you on the Bond.