Bid, performance and labour and material bonds for established Ontario contractors, handled by our dedicated surety department. Please allow a week or more for us to respond to new requests.
Most tender packages require some combination of these contract bonds. Here's what each one does.
Different bonds apply at different stages of a construction project. Here's when each one comes into play.
Surety bonding is a specialized area. Here's what we bring to the table.
We have specialists who focus exclusively on surety bonding for contractors.
We tell you up front what a surety market will need and whether your file is ready to go to one.
We work with established contractors to build bonding limits over time as financials and track record support it.
We understand construction, tender processes, and what owners are looking for.
A surety bond is a three-party agreement tied to a specific contract. It's not insurance: it's underwritten more like credit.
The business doing the work and asking for surety support.
The party requiring the bond as part of tender or contract award.
The financial backing behind your promise. If the contractor fails to perform, the surety responds under the bond terms.
The better your financials, track record, and planning, the higher the bonding limits you can access. We help contractors build their surety profile over time.
What we need before we can review your fileOur surety department is working through a backlog. Please allow a week or more for us to respond. We can't take same-day or rush bond requests.
Company information, ownership details, organizational structure, and key personnel.
Download PDFRequired for all principal owners providing personal indemnity on the bonding facility.
Download PDFCurrent and upcoming projects, contract values, completion status, and outstanding receivables.
Download ExcelA surety bond is a three-party guarantee tied to a specific contract. The surety backs the contractor's (principal's) promise to the project owner (obligee) to sign the contract, finish the work and pay subcontractors and suppliers. If the surety pays a claim, the contractor must reimburse it.
A bid bond (CCDC 220) goes in with your tender and guarantees you will sign the contract at your bid price, typically for 10% of the tender. Once you win, the performance bond (CCDC 221) guarantees you will complete the work, and the labour and material payment bond (CCDC 222) guarantees your subcontractors and suppliers get paid. Public owners in Ontario most often ask for each final bond at 50% of the contract value.
Please allow a week or more for our first response. Our surety department is working through a backlog, and we can't take same-day or rush bond requests. After that, timing depends on your file: CPA-prepared financial statements, personal net worth statements, a bank letter and a work-on-hand schedule are the starting point, and gaps slow things down.
Surety is underwritten like credit. Underwriters review your CPA-prepared financial statements (usually 2 to 3 years), working capital, bank terms, work on hand, your track record on similar jobs and the personal net worth of the owners, who sign a General Agreement of Indemnity. The stronger those are, the higher your single and aggregate limits.
No. Insurance transfers risk from you to an insurer. A surety bond is a guarantee: the surety backs your promise to the owner, and if it pays a claim, you are required to reimburse it. That is why surety is underwritten on your financials and track record, much like a bank loan.
Ready to Apply?
Fill out our surety request form with your financial statements handy. Please allow a week or more for a response.
Surety bond premiums in Ontario typically range from 0.5% to 3% of the contract value for qualified contractors, plus an annual administration fee of $1,500 to $2,500. Here is what drives your rate and how to position yourself for the best pricing.
Getting bonded opens doors to public contracts and larger private projects. Here's exactly what Ontario contractors need to get approved and how to build bonding capacity over time.
Surety underwriting is not insurance underwriting. A surety company expects zero losses and full repayment if a claim occurs. Here is what underwriters actually evaluate, why the Three Cs matter, and how Ontario contractors can position themselves for faster approvals and higher bonding limits.