In a Typical Building Project, the GC Must Provide (And

question 67

Essay

In a typical building project, the GC must provide (and pay for)all three surety bonds-bid bond, performance bond, and payment bond-to the owner. In certain situations, the owner may waive bid bond requirement. Mention one such situation.

---

Definitions:

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, differing from its market value.

Strip Bond

A bond where both the principal and regular coupon payments have been separated and are sold individually as zero-coupon bonds.

Compounded Semiannually

Refers to the process where interest on a deposit or loan is calculated and added to the account balance twice a year.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument is due to be paid in full.