A lender is requiring a payment & performance bond on a commercial construction project. My question is, who gets the bond and who is it written to? I am thinking the GC for both?
Payment and Performance Bonds apply accross the board - to GC's, Subs, and could even be extended to suppliers. That said, the lender is most likely looking for bonds to cover the GC, with the expectation that the GC will control the operation of its subs and suppliers.
Obviously, these general observations should be taken with a grain of salt. I recommend obtaining Counsel of your own to review and interpret the Lender's request for bonds, as well as the host of issues that will arise as the job proceeds.
Best of luck!