Bonding options for all types of contractors.
- Electronically apply for your bond facility
- Secure business approval online
- Receive digital bonds when possible
- Reliable surety providers
If you want to bid on a project that needs a Bid Bond, you’re in the right place. We offer full contract bonding services for various projects as long as you have a bond facility.
Click “Get a Quote” today to get started.
Bonding options for all types of contractors.
Numerous bonding firms often reject applicants who don't meet their strict underwriting criteria. Not Us. We work in partnership with you to explore solutions that result in securing your approval.
While physical copies are still a requirement for many bonds, we actively minimize paper usage by offering digital versions of bonds and surety riders whenever possible.
While we engage with global surety enterprises for our bond guarantees, our origins are rooted in Canada.
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A Bid Bond is a financial tool that ensures a project owner of a dedicated contractual commitment. In essence, bonding resembles a process of qualification or endorsement. During the bidding or tender phase of a project, a Bid Bond serves as one of these qualifying steps. Alongside your bid or proposal for a specific contract or task, the bond document is submitted to the project owner. This effectively attests and assures the project owner that you possess the capability to fulfill the contract as specified, within the mentioned amount. The typical Bid Bond value is ten percent (10%) of the contract price submitted, although other figures might be applicable as well.
Bid Bonds hold a pivotal role in the tender procedures of many project owners. This requirement predominantly surfaces for contracts and tasks surpassing $50,000, extending applicability to both private and municipal project owners – often referred to as the “Obligee.”
From the viewpoint of an owner (or Obligee), the solicitation of a Bid Bond during the assessment of tenders serves as a deterrent against contractors submitting insincere or unserious bids. This outcome is derived from the bond document’s establishment of a binding commitment from the contractor to execute and successfully conclude the specified undertaking. The Bid Bond is supported by a surety company. Alternatively, if the submitting contractor finds themselves incapable of executing the committed project within the tendered sum, the bond can be relinquished to the Obligee for the amount stated (typically 10%). This incapacity to perform is termed a “Default.”
The ability to provide a Bid Bond, or its cost, relies on specific details about your company. It’s important to note that the Bid Bond itself doesn’t come with a cost or premium. Instead, your capability to offer a Bid Bond, along with other essential bonding documents, becomes viable once you establish what’s known as a “Bond Facility.” Think of this facility as an annual subscription that equips you to provide bonds, particularly “Contract Bonds.”
The cost of your Bond Facility, which essentially covers your annual subscription to furnish various types of bonds, can vary depending on your business’s financial standing. Generally, you can expect to invest anywhere between $1,500 and $5,000 annually for setting up and maintaining a Bond Facility.
Apply any time and get the right protection for your project or tender today! Please note that completing our application does not cost anything or require you to proceed with the bonding once a quote is provided – customer service is our priority.
We offer access to a standardized array of surety bonds, including:
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