Some specialized brokers have agreements with numerous insurers, allowing them to issue bonds directly to their offices. This means that individuals or companies who have opened a surety bond file can receive the documents quickly and efficiently.
The variety of bonds on offer
1- Bid bond
This is a bond that can be used during a call for tenders to demonstrate good faith to the client. It is also a means of reassuring the client of the soundness of its financial situation for the project in question. The bond also guarantees the production of all necessary documents if the bidder is selected.
If the contractor chooses not to carry out the work, he is obliged to pay the difference to the bidder, or a percentage in accordance with what is stipulated in the contract. This type of bond is usually accompanied by a letter of intent stipulating that the surety undertakes to provide a performance bondOnce the bidder has been selected to carry out the project, we will also issue a labour payment bond.
2- Performance bond
Thanks to this bond, the client can be sure that the contract will be carried out under ideal conditions. In the event of default by the debtor, the bond is used to complete the work.
3- Material and labor bonds
This type of bond represents a commitment to pay for labor and materials if the contractor fails to meet his responsibilities. This bond prevents problems with subcontractors who may place legal mortgages on the construction. Such a surety bond comes with a performance bond.
4- Maintenance bond
It provides a guarantee to the client that repairs will be carried out in the event of omissions or defects. This maintenance work has a clearly defined duration after provisional acceptance of the work. If the contractor defaults, the guarantor is responsible for repairs.
5- Permit bond
Some administrations and government agencies require a bond to obtain a license or permit needed to carry out an activity. The purpose of such a precaution is to protect the interests of the organization. Numerous types of surety bonds are available, and can be issued directly from the offices of the insurers offering them, for periods ranging from two to three years.
6- Customs bond
It provides financial protection, guaranteeing the beneficiary payment of customs duties and taxes on imported goods. It simplifies the passage of goods through customs.
7- Miscellaneous bonds
Several types of guarantee are proposed on the basis of the requirements applicable in Quebec for the various works and projects carried out on a national or international scale.
