What Is Agreement to Bond?
An Agreement to Bond is a surety’s written commitment, provided at bid time, confirming it will issue the required performance and payment bonds if the contractor wins the contract. Owners often require it with a bid as proof that the contractor can be bonded for the job.
Frequently asked questions
What is an Agreement to Bond used for?
An Agreement to Bond shows the owner, at bid time, that a surety will issue the required performance and labour and material payment bonds if the contractor wins. It is usually submitted with the bid, often alongside a bid bond.
Is an Agreement to Bond the same as a bid bond?
No. A bid bond guarantees the contractor will honour its bid, while an Agreement to Bond is the surety's commitment to issue the final bonds after the contract is awarded. Tenders often ask for both.
How do I get an Agreement to Bond in Ontario?
You get one through a surety broker once a surety has approved your company for bonding. The surety reviews your financial statements, work on hand, and experience, then issues the Agreement to Bond for the specific tender.
Questions about Agreement to Bond?
Our Ontario brokers can explain how it applies to your policy.
Talk to a Roughley broker