Landscape Architect Registration Examination (LARE) Practice Exam

Question: 1 / 400

What aspect does a payment bond primarily cover?

Material liabilities

Labor costs

Subcontractor payments

A payment bond primarily addresses the obligation of ensuring that subcontractors and suppliers are paid for their work and materials provided on a construction project. This financial instrument protects those who provide labor and materials when the general contractor fails to meet these payment commitments.

By securing the payment bond, the project owner guarantees that subcontractors are not left unpaid, allowing for the smooth continuation of work and mitigating the potential for liens or disputes arising from unpaid labor or materials. Thus, the focus of a payment bond is specifically on covering the payments due to subcontractors.

This distinction highlights the importance of maintaining good relationships and trust among the various parties involved in a construction project, while also ensuring that all labor and materials necessary for completing the project are secured and compensated.

Get further explanation with Examzify DeepDiveBeta

Project completion

Next Question

Report this question

Download Landscape Architect Registration Examination (LARE) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy