Performance Bond

If you are looking to provide bonds for a project or tender that has Performance Bond 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 Performance Bond, you’ll require what we call a Bond Facility. Learn more and apply below today!

Performance Bond

What is a Performance Bond?

A Performance Bond is a Surety document that guarantees the performance of a contract awarded to a contractor, in accordance to its terms, conditions, and specifications for the price agreed upon in the contract. This bond type guarantees that a contractor will complete a project according to plan, allowing the developer / owner to make a claim under the bond to recover lost time and money should they fail to do so. The most frequently requested bond amounts for a Performance Bond are for 50% or 100% of the contract price.

Why do I need a Performance Bond?

When a developer / owner wants to protect their investment made on a project, the contractor that won the bid is often required to provide a performance bond (commonly accompanied by a Labour & Material Payment Bond, but can be issued on a standalone basis as well) before work can begin. With a financial guarantee backed by a licensed Surety company in Canada, you can ensure your company will qualify for whatever project is of interest.

How much does it cost?

The cost of a Performance Bond will vary depending on the rates of your Bond Facility and the size of contract the bond is required for. Standard rates for Performance Bonds range from $6 – $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 Performance 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.