Three years ago, bonded contractors had an advantage on select public bids. Today, more Saskatchewan project owners are requiring bonded general contractors and sub-contractors across commercial, institutional, and municipal work. If you do not have a bond facility, you are being screened out before the bid is even read.
What has changed
Project owners, especially municipal clients and larger commercial developers, are tightening contractor qualification requirements. Risk management pressure from their own insurers and lenders is driving this. Bonding requirements that used to apply only to large public projects are migrating down to mid-size commercial builds.
If you are a general contractor or sub-trade in Saskatchewan without a pre-established bond facility, you are losing work to competitors who have one.
The four bonds you need to understand
Bid bond: Required before you can submit on a bonded tender. Should you be awarded the contract and be unable to fulfill the contract requirements, this may cover any costs you would be required to pay for the project owner to re-tender the project.
Consent of Surety: This may accompany a bid bond or be issued on its own. It guarantees that, in the event you are the successful bidder, your surety will provide the required final bonds.
Performance bond: Required once you are awarded the contract. Guarantees you will complete the work to spec.
Labour and material bond: Guarantees your subs and suppliers get paid even if you default.
Why you need your facility before the bid
A surety facility is not the same as buying a single bond. A surety underwriter approves your company based on your financial strength and work history. That approval takes time. Once your facility is in place, individual bonds are issued quickly.
The right move: call Cherry now, establish your facility, and have it ready for the next opportunity.
What Cherry needs from you to get started
Two to three years of financial statements, your current work-in-progress schedule, current accounts receivable and payable, and any loan agreements in place. Cherry's commercial team will walk you through the surety application and connect you with the right underwriter for your company's size and trade.