§ 5020 Contractor Payment Surety Bond

• •Before starting a big job, the person doing the work must give a special promise (called a 'surety bond') to the boss (like the city or company hiring them).
• •This promise must be worth at least half of the total money they will get paid for the job.
• •The promise makes sure the worker will pay for all the stuff they use, like tools, machines, or materials, even if they don’t finish the job.

A city hires a company to fix a road for $1,000,000.

Before starting, the company must give the city a promise (surety bond) worth at least $500,000. This promise makes sure the company will pay for things like asphalt, workers' tools, and rented machines, even if they run out of money.