Which of the following bonds guarantees that the contractor has paid the subcontractor?

The correct choice is the payment bond, which serves a specific purpose in construction projects. A payment bond guarantees that the contractor will pay all subcontractors, laborers, and material suppliers involved in the project. Essentially, it protects these parties in case the contractor fails to fulfill their payment obligations. This is essential for ensuring that everyone involved in the project gets compensated, promoting fairness and financial security within the construction process.

A bid bond is designed to ensure that a contractor submits a serious bid and will enter into a contract if awarded. A performance bond guarantees that the contractor will complete the project according to the terms of the contract, but it does not address payment issues. The option referring to "James bond" is irrelevant in this context, as it is a fictional character and has no connection to construction or bonding practices.

Understanding the function of each type of bond helps clarify their roles in the construction industry, and the payment bond plays a crucial part in safeguarding the interests of subcontractors and suppliers.