Labour & Material Payment Bond

Labour & Material Payment Bond

Labour & Material Payment Bond

If you are looking to provide bonds for a project or tender that has Labour & Material Payment Bond (L&M) requirements, you’ve come to the right place. We provide full contract bonding services to our clients for all types of contracts and projects. In order to obtain the ability to provide a Labour & Material Bond, you’ll require what we call a Bond Facility. Learn more below and apply today!

L&M Bond solutions for all types of contractors.
  • Apply for your bond facility electronically
  • Get your business approved online
  • Reliable surety providers
  • Digital bonds provided when possible

We find ways to say "Yes"

Many bonding companies will decline anybody that doesn't fit within their limited underwriting parameters. We work with you to find ways to get you approved.

Paper free when possible

Although many bonds still require original copies in hand, we eliminate paper where we can and provide digital versions of bonds and surety riders.

Top rated surety companies

We use Canada's top rated surety providers to ensure your bond is backed with adequate finances.

Canadian & global guarantees

Although we are able to utilize multi-national surety companies for our bond guarantees, our roots remain in Canada.

Learn more about L&M Bonds

A Labour & Material Payment Bond provides security for the principal’s subcontractors and suppliers in the event that the principal contractor fails to pay them. This document guarantees that the Surety will pay out the said subcontractors and suppliers should a principal company default occur. The most frequently requested bond amounts for a Labour & Material Payment Bond are for 50% or 100% of the contract price (and must be accompanied by a Peformance Bond).

Labour & Material Payment Bonds are more often required in projects for the public sector; however, their use is increasing in private contracts as well. With the financial backing of a registered Surety Company in Canada, you can ensure that your company will qualify for whatever project is of interest.

The cost of a Labour & Material Payment Bond will vary depending on the rates of your bond Facility and the size of the contract the bond is required for. Standard rates for Performance Bonds range from $4 – $25 per $1,000 of the contract price. Please don’t hesitate to give us a call if you’d like to discuss what determines a companies bond rates.

The ability to obtain any contract bonds (including a L&M Bond), as stated above, is part of an annual subscription called a Bond Facility which is typically in the range of $1,500 – $5,000 per year.

Our Underwriters

What Our Clients Say

CE Plumbing & Heating
CE Plumbing & Heating
Business Insurance Package
Read More
I thought getting business insurance online would be a lot more difficult than it actually was. Netsurance made it very easy and user friendly to get it all done online. Had a great experience!
Marie L.
Marie L.
Event Insurance
Read More
Got my event liability insurance through Netsurance. Was very easy and the best price I could find. I also didn't need to worry about policy specifics thanks to their unique venue pages.
BayRoot Landscaping
BayRoot Landscaping
Business Insurance Package
Read More
Finally! A website that simplifies buying insurance. Quick, easy and straight to the point. I continuously highly recommend netsurance.ca to all of my business partners and friends alike. Thank you!
Hamid M.
Hamid M.
Renters Insurance
Read More
Got renters insurance online. Easy to apply and get a quote. Had everything done in minutes! Would recommend to anybody looking at tenants insurance.
MGA Detailing
MGA Detailing
Commercial General Liability
Read More
Purchased business insurance through the online application process. Would recommend to anybody starting their own business that needs a simple solution for the companies insurance requirements.
Kasra I.
Kasra I.
Event Insurance
Read More
Got our event insurance for a birthday party through their custom venue platform online. Cheapest price and could even do it off my phone.