Benefits Bonds Are Better For The Construction Project Owner Bonds Are Better For The Contractor Bonds Are Better For Subcontractors and Material Suppliers Conclusion Bonds Are Better For Subcontractors and Material Suppliers As already mentioned, letters of credit provide little, if any, protection to subcontractors, laborers or material suppliers who have put their work or goods into the contract. Surety bonds provide this protection. In fact, surety companies spend more of their claims dollars under the Payment Bond than they do under the Performance Bond.
