What is the focus of a Construction Payment Bond?

A Construction Payment Bond primarily serves as a guarantee of payment to subcontractors, suppliers, and laborers involved in a construction project. This bond ensures that all stakeholders in the construction process will be compensated for their contributions, even if the contractor defaults on payments.

Essentially, the bond protects these parties from financial loss due to non-payment, thereby facilitating trust and stability within the construction industry. By securing this payment obligation, it also contributes to the overall health of the construction project and the relationships among all involved parties.

The other options do not accurately reflect the primary function of a Construction Payment Bond. A warranty contract generally relates to the quality and performance of the work rather than payment assurances. Dispute resolution clauses are mechanisms to resolve conflicts but do not pertain specifically to payment guarantees. Lease agreements do not fall under the scope of construction payment but rather deal with renting property.