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Contract Surety bonds are usually required by government, private and institutional organizations.  They provide a guarantee that projects will be completed successfully and by a certain period of time.  They are commonly used in the construction sector to ensure contractors fulfill their duties and obligations to project owners. Contract Surety bonds may include:

  • Bid Bond: this type of bond pre-qualifies contractors and provides security to the project owner that the contractor will enter into a contract if their bid is chosen.
  • Surety’s Consent/Agreement to Bond: an Agreement to Bond promises that The Guarantee will issue the final bonds to the contractor if their bid is chosen and wins.
  • Performance Bond: provides a guarantee that the contract will be fulfilled according to all terms and conditions stated within the contract.
  • Labour and Material Payment Bond: ensures that sub-contractors and suppliers will receive full payment for their goods and services.
  • Maintenance Bond: provides for the maintenance and repair of a completed project over a contractually defined period of time.

Commercial Surety bonds will guarantee that you will fulfill statutory or contractual obligations. The majority of Commercial Surety bonds are specified in federal and provincial acts and their regulations. At Cornerstone Insurance Brokers, we have the expertise to service all your Surety needs.