Subcontractor payment bonds, established by the law of December 31, 1975, aim to secure subcontractors involved in a project by guaranteeing the payment of agreed amounts in the subcontract in the event of non-payment by the main contractor.

When a principal contractor engages subcontractors for part of the work, the subcontractor payment bond protects the financial interests of these subcontractors. By providing a financial guarantee, usually in the form of a bond, the principal contractor commits to ensuring the payment of subcontractors according to the terms of the subcontract.

This legal measure aims to ensure the smooth progress of construction projects and protect subcontractors against the risk of non-payment by the main contractor. It also provides additional security to public authorities by ensuring the efficient execution of publicly funded projects.

In some cases, grants or government aid may be conditioned on the presentation of a subcontractor payment bond, demonstrating the beneficiary’s commitment to fulfilling their contractual obligations to their subcontractors.