Contract Surety


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What is Contract Surety?

Contract Surety Bonds guarantee the contractual obligations of a contracting entity (the “Contractor”) to the purchaser of their services (the “Owner”).   In most circumstances these bonds are required by the Owner as part of the Contractor’s contract terms and conditions.

Binks does business with several Surety Companies which offer contract surety facilities primarily to construction companies, service contractors, suppliers and manufacturers for:

Bids and Tenders  – There are commonly two types of bonds that contractors are required to post when bidding work:

  1. Bid Bond guarantees that the Contractor will enter into a contract with the Owner for the amount of its bid, if successful, or the Surety will pay the difference between the Contractor’s bid price and the next lowest price, subject to amount of the bond.
  2. An Agreement to Bond is a commitment by the Surety to provide the Owner with Performance and Payment Bonds as required in the tender documents.

Final Contract Security — There are commonly two type of bonds that contractors are required to post as security for their contractual obligations:

  1. Performance Bonds guarantee the Contractor will perform its obligations to the Owner according the terms and conditions of the contract.
  2. Often accompanying Performance Bonds are Labour and Material Payment Bonds which offer payment protection to the Contractor’s subcontractors and suppliers;

Accounts are typically underwritten with a view to establishing surety facilities to support a contractor’s long term bonding needs. Nonetheless, we will consider ‘one shot’ deals for single use bond requirements.

Classes

  • Developers
  • General Contractors
  • Subcontractors
  • Road Contractors
  • Sewer and Water main Contractors
  • Other Heavy Civil Contractors
  • Service Contractors (Waste Removal, Janitorial Firms, etc.)
  • Specialty Contractors
  • Manufacturers

For more information please contact Claude Miron at (613) 226-1350 ext 250