Surety Bonds for Smaller Canadian Contractors
Small and emerging contractors grow by increasing contracting opportunities, especially in public sector construction. Since most public buyers require surety bonds, it is challenging for the smaller contractors to get access to those projects. Though each owner sets their own limit for projects requiring bonds and some offer the choice of providing a letter of credit or certified cheque; the average project size requiring bonds is about $125,000.
Obviously the contractors would prefer not to tie up their borrowing line by using a letter of credit and there are times when no alternatives are offered. There are a number of surety options now available.
1.Municipalworks Blanket Bond
2.QuickBond
3.Traditional Bonding Facility for Small Contractors
There are strengths and limitations to each of these options and we would be pleased to discuss with you which option best suits your needs.
Lori Kieswetter
Surety Bond Broker
lkieswetter@ogilvy.ca
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