On a contract valued at $5.1 million, what is the minimum value of the payment bond required?

In Georgia, the requirement for payment bonds is generally tied to the value of the contract. According to state law, when a public work contract is valued over $100,000, the payment bond should typically be equal to the full value of the contract. However, when it comes to private projects, often the minimum value of the payment bond can be set at half of the contract value or may be rounded to specific thresholds within state guidelines.

In this case, for a contract valued at $5.1 million, the correct minimum payment bond value would be set at a calculation that reflects the common standards used in practice, which usually rounds to the nearest significant figure, establishing a minimum bond requirement of $2.5 million. This ensures that subcontractors and suppliers have security for the amount of work and materials they provide. Hence, a payment bond of $2.5 million aligns with these existing standards and guarantees the necessary coverage for the project's financial obligations.