---
title: Payment V. Performance Bonds
description: What is the difference between a Payment Bond and a Performance Bond? Get the answer to this and other questions, here!
---

[Education Center ](https://www.ncscredit.com/education-center/resources)

# [Payment V. Performance Bonds](https://www.ncscredit.com/education-center/resources/infographic-payment-v-performance-bonds)

 Written by [kalford](https://www.ncscredit.com/education-center/resources/author/kalford) | Mar 17, 2016 4:00:00 AM

What is the difference between a Payment Bond and a Performance Bond? A payment bond is a promise of payment and a performance bond is a promise of performance. A payment bond is a surety bond, most often on public projects, issued as assurance of payment to certain parties should the principal of the bond breach their construction contract. A performance bond is a bond issued to one party of a contract as a guarantee of the performance of the other party to meet the obligations specified in the contract.

[View full post](https://www.ncscredit.com/education-center/resources/infographic-payment-v-performance-bonds)

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