An Advance Payment Bond (AP Bond) is issued to cover either the simple making of an advanced payment or to guarantee the proper use of the funds advanced that manages the risk of a contractor’s failure to earn the whole of any advance payment from the owner by failing to provide goods and services to an equivalent value. An AP Bond is supplied by the contractor receiving an advance payment to the owner to guarantee the proper use of the advance payment. (Also, called as the Advance Payment Guarantee)
Related Definitions in the Project: The Project Contract; Bond and Insurance
