Saskatchewan project owners, municipal, provincial, and commercial, require bonded contractors more than ever. Cherry places bid bonds, performance bonds, and labour and material bonds for Saskatchewan contractors, with a pre-established bond facility so you can respond when the opportunity shows up.
A bid bond guarantees that if you are awarded a contract, you will enter into the contract at the price you bid. If you fail to do so, the surety compensates the project owner for the difference between your bid and the next lowest bid. Required on most public tenders and large commercial projects.
A performance bond guarantees the project will be completed according to the contract specifications. If you default, the surety steps in to arrange completion of the project. Required by most municipal and provincial clients alongside a bid bond.
Also called a payment bond. Guarantees that your sub-contractors, suppliers, and labourers will be paid even if you default on the contract. Most public sector projects require a labour and material bond alongside a performance bond.
A maintenance bond guarantees your workmanship for a defined period after project completion - typically one to two years. Required by some project owners as a condition of final payment.
Required by certain municipalities and regulatory bodies as a condition of licensing or permit issuance. Cherry places license bonds for contractors and trades that need them for specific jurisdictions.
Surety underwriters approve a bond facility for your company based on your financial strength and work history - not for a specific project. Once your facility is in place, individual bonds are issued quickly when a tender requires one. Cherry brokers often suggest establishing your facility well before your next bonded bid.
A surety bond is a three-party agreement between you (the principal), your client (the obligee), and the surety company (the guarantor). It guarantees your contractual obligations will be fulfilled. Most public sector and large commercial project owners in Saskatchewan require bonded contractors.
A bid bond guarantees you will honour your bid price and sign the contract if awarded. A performance bond guarantees the work will be completed to spec once the contract is signed. Projects that require one almost always require both.
A labour and material (payment) bond guarantees your sub-contractors and suppliers will be paid even if you default on the contract. It protects sub-trades from non-payment and is typically required alongside a performance bond on public sector projects.
Surety bond premiums are typically a small percentage of the contract value - often between 0.5% and 3% depending on your company's financial strength, bonding history, and the size of the contract. Cherry will review your situation and provide a specific cost.
With an established bond facility, individual bonds for standard contract values are typically issued within 24 to 48 hours. Larger or more complex bonds may require additional underwriting time. This is why Cherry brokers often suggest establishing your facility before you need it for a specific tender.
Surety underwriters typically review two to three years of financial statements, your current work-in-progress schedule, your banking relationship, and your company's bonding history. Cherry will tell you exactly what to prepare before your first underwriting meeting.
Yes, though approval conditions and premium rates will reflect your company's limited financial history. Cherry works with surety markets that have programs for newer contractors. Starting the conversation early - before you need a bond for a specific bid - is always the right approach.
If you default on a bonded contract, the surety company steps in to arrange completion - either by hiring another contractor or compensating the project owner. Your company is then obligated to reimburse the surety for their costs. Surety bonds are not insurance - the principal remains financially responsible for defaults.