Performance Bonds (up to $300,000)
Performance Bond Program for Emerging Contractors
Finally a quick and easy solution to your performance bond needs, for projects up to $300,000.
Are you a growing contractor looking for your first performance bond facility?
Have you struggled to qualify for a traditional surety or have been deterred because of the high cost or the vast amount of paperwork?
The Emerging Contractors' program offers a quick and easy qualification process and provides the flexibility to graduate into a Standard Facility, issuing performance bonds greater than $300,000.
The annual cost of an Emerging Facility varies, based on your credit profile and the scope of work that performance bonding is required for but the cost is less than a standard facility. Similarly, a number of factors determine the cost of final performance bonds - the range is between 1.2% - 2.5% of total value of the project.
Bid bonds and other pre-qualification letters are included free of charge with your surety facility.
The program's performance bonds are underwritten by a Canadian licensed and federally approved insurer, on industry standard CCDC forms and facilitates bids bonds, 50% or 100% performance bonds, 50% or 100% labour & material bonds, maintenance bonds, consents of surety, agreements to bond and all other standard and non-standard requirements.
Q-What type of Contractors are accepted into the program?
A-Contractors of all types
Q-What types of bonded contracts are unwritten in the program?
A-All types of contracts are considered
Q-What about Asbestos, Environmental, recycling, waste removal and High-tech?
A-Yes, all types of contracts are considered
Q-What if I require a larger performance bond than $300,000
A-The program allows for a transition into a standard facility, OAC
Q- What is the cost for a bid bond?
A-Bid Bonds, Agreements to Bond and Pre-qualification Letters are included with your surety facility
Q-What is the cost for the surety facility?
A-An Annual fee is determined on a case by case basis and is dependent on credit profile and scope of work
Q-Does the Emerging Contractors Performance Bond Program cover the warranty period?
A-Yes, the standard is a one year warranty/maintenance period, and we can offer two years or more, on a case by case basis
Q-What if I participate in specialized field and do jobs across the country?
A-The Emerging Contractor program can facilitate
Q-What if my projects are mainly subcontracted?
A-That is fine with us.