Project Management Professional (PMP) Exam Practice – Question1639

Payment bonds are often required by the contract and require specific actions under the stated conditions. Payment bonds are specifically designed to ensure that the prime contractor provides payment of______________


A. Insurance premiums
B. Weekly payrolls
C. Subcontractors, laborers, and sellers of material
D. Damages for accidents caused

Correct Answer: C

Explanation:

Explanation:
Payment bonds, which are required by the buyer, are issued by guarantors to prime contractors. The buyer wants to ensure that subcontractors of the prime contractor receive payment so that work is not disrupted.