Legal glossary

Payment bond

Payment bond: A surety bond guaranteeing that a contractor will pay its subcontractors and suppliers for labor and materials on a project. On federal construction contracts above the threshold set by statute and regulation, the Miller Act requires the contractor to furnish a payment bond (40 U.S.C. § 3131(b)(2)), and many states have similar "Little Miller Act" laws for public projects.

Payment bond — an attorney meeting a client

What payment bond means

In short, payment bond is a term you will meet in court papers, rules and legal research. The definition above gives its usual meaning in American civil practice. However, the exact meaning can depend on the rule, statute or court decision that uses it. So it helps to read the term in context.

Where payment bond comes up

The term is used across many kinds of cases. For example, you may see it in pleadings, motions and court orders. To see it in context, browse the motions and procedures library or the Learn the Law topics.

How to research the term

To research payment bond, begin with the rule, statute or contract where the word is used. Each one can give it a slightly different meaning. Then compare that text with how courts in your area have applied it. Also check the local rules of your court, since they can add requirements. If your case is in state court, the state rules control. So start with our state procedures guide to find them. In the end, always confirm that the source you rely on is current.

You can read the current federal court rules online for free.

Related legal terms

Why precise terms matter

Courts read legal terms closely. As a result, knowing the exact meaning of a word helps you follow orders, rules and filings. Each glossary entry on Lawtopolis is short on purpose and links to the pages where the term is used.

Sources

Sources last reviewed: 2026-10-24

Lawtopolis provides legal information and education, not legal advice. Using this site does not create an attorney-client relationship. Laws and court rules vary by jurisdiction and change over time; verify every authority against the official source and consult a licensed attorney in your jurisdiction about your situation.