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AP and P bonds

Anonymous Contractor

Why in many contracts, they seperating the advanced payment bond and the performance bond? Isn't it more handy to have one bond to cover all advanced payment and performance if the term set both guaranty finishes at the same time?

1 reply

Carol Sigmond

Construction Lawyer

Attorney at Greenspoon Marder

| 54 reviews

May 9, 2021

Interesting question. Performance bonds protect up the tier, the payment bonds protect down ward tiers. Traditionally, this created a divide. But the real issue the terms of the bond.

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