What is one key characteristic of a payment bond?

A payment bond plays a crucial role in ensuring that suppliers, subcontractors, and laborers are paid for their work or materials provided on a construction project. This financial guarantee is designed to protect these parties from the risk of non-payment, which can occur if the contractor defaults on their payment obligations.

By providing assurance that payments will be made, a payment bond helps maintain trust within the construction industry and enables smoother project execution. It serves as a form of security for those who contribute to the project, ensuring that they can rely on receiving compensation for their efforts and resources.

The other options, while related to construction and payment issues, do not capture the primary purpose of a payment bond. For instance, protecting against project delays is more aligned with a performance bond. Ensuring wages for all workers or covering equipment costs does not specifically address the function and protection a payment bond provides, which is centered on guaranteeing payments to suppliers and subcontractors.