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Performance Bond


A performance bond is a form of contract surety bond which may be required in support of any type of contract. The majority of performance bonds are issued on behalf of construction industry contractors in support of contracts they wish to enter into with various government related or institutional organizations. Various large commercial concerns and financial institutions may also require performance bonds.

While contracts requiring bonding are most commonly related to construction projects, performance bonds are frequently required in support of contracts for the supply of materials, services, labour and products of many kinds.

Performance bonds are most commonly issued in Canada and the U.S. By insurance companies who are specifically licensed for this purpose (known as surety companies or sureties). The party asking for the bond (eg. a municipal government) is known as the obligee. The party providing the bond (eg. a construction contractor) is known as the principal.

Upon receipt of an application for performance bonding a surety will typically underwrite the application in a manner similar to that used by a bank reviewing a request for a line of credit.

The following information is generally required by a surety when it is expected that contracts to be bonded for a particular client may exceed $100,000:

  • company information questionnaire (see contractor questionnaire tab)

  • bank letter confirming company's credit line level (if applicable)

  • details of upcoming contract requiring performance bond (see bond requisition tab)

  • company financial statements, preferably prepared by a professional accountant who is not an employee of the applicant


Apply for a Bond

To apply for a bond, please complete our Bond Request Form, give us a call or send an email:

Phone – 1.866.209.2813 ext 201

E-mail – rgolberg@suretysource.ca

Bond Request Form

If you would like to discuss Bonding or inquire about a quote, please fill out this form and we will get back to you as soon as possible.

Name:

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Brokerage:

Bond Type: