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A fee bond protects the suppliers and subcontractors by ensuring they are going to be paid, and it additionally protects the project owner against potential mechanic’s liens that might in any other case be filed to secure payment. Many states require contractors to publish bonds by law, and building contracts might also mandate construction bonds earlier than they can contract for certain initiatives. Bid Bonds A party who's harmed by the contractor can file a bond claim if the bonded party fails to carry out as promised, follow the law, comply with by way of on bids, or pay the subcontractors and suppliers for his or her work and provides. Payment bonds - These bonds may be required to ensure the contractor will well timed pay the subcontractors and suppliers for their work and suppl