What is a characteristic feature of a payment bond?

A payment bond is specifically designed to ensure that subcontractors, laborers, and suppliers are paid for their work and materials provided on a construction project. This financial assurance is crucial in the construction industry, as it helps to maintain cash flow and protects those who provide essential services and materials from being unpaid. In this context, the characteristic feature of a payment bond is its assurance of payment to subcontractors and suppliers, ensuring that they are compensated for their contributions to the project.

The other options refer to different types of bonds or insurance that do not relate specifically to payment for work done. For example, while project completion guarantees are typically associated with performance bonds, they do not address the payment aspect. Similarly, equipment loss pertains to insurance coverage for lost or damaged equipment, and health and safety liabilities are covered under different regulations and insurance policies, not a payment bond. Thus, the defining characteristic of a payment bond is its focused protection for those involved in providing labor and materials.