This series of articles on the Butler County prison project in Pennsylvania illustrates how
performance and payment (P&P) bonds work and what they guarantee:
Work on prison scheduled to begin Oct. 1 Contractor pledges faster work
Prison project may take longer Financial impact of prison delay grows Bonding agent for prison project to hire new general
contractor
Although some of the terminology is erroneous or imprecise, these articles describe the evolution of a typical
performance bond default and the payment bond claims which usually accompany it. If you click through these, you'll get a feel for the purpose of a P&P bond.
Using a real-world example, these articles generally show what is guaranteed by the bonds, and the
surety claim process used to see it through.