Contracting and Surety
Bonding And Surety
E-Bonding…are You Ready?
E-Bonding is here…and it’s here to stay. Public Works will be starting the process in April 2016 of accepting E-bonds, and many Owners will follow in their wake!
- The time pressures involved in the bidding process where even one minute late can mean disqualification. An automated approach where documents are delivered instantaneously can alleviate the last-minute pressures of a tender closing.
- The laws of tendering require strict, error-free compliance with the bid documents. Automated creation of the bid bond and other tender documents can significantly reduce the chance of errors which can lead to a bid being declared informal.
- The ease and economy of transmission: Not only is delivery easier, faster and “greener”, it is far less expensive and can reduce or eliminate mounting courier costs.
At Reid & Bradley’s we are ready for the e-bonding revolution and can help you get ready as well. If you have any questions or need some help, please let us know and we’ll get you there!
Reid & Bradley’s Insurance is proud to offer its contractors a full range of bonding and surety services. We make the process as simple as possible, providing solutions for new contractors, and improved terms and conditions for those who are well-established in the industry.
Reid & Bradley’s Insurance constantly strives to achieve three main goals:
- Provide the bonding limits you require;
- Negotiate the best terms and conditions to control your costs;
- Negotiate favorable security on your behalf, to limit your indemnity.
What Is A Bond, And Why Do You Need One?
When a person hires someone to do work on a large project, one of the first questions that comes up is whether the contractor is licensed, bonded and insured. People who carry this type of insurance are referred to as being “bonded.”
An employer or company that is either required by law or that wants to increase credibility, pays a premium to an insurer called a bonding company.
If a job is performed incorrectly and results in a loss for the customer, the customer can file a claim for damages with the bonding company. This minimizes the financial risk for the client.
The Reid & Bradley’s Advantage
When you’re facing a demanding bonding situation, Reid & Bradley’s extensive knowledge and experience works for you to find a “win-win” solution. Reid & Bradley’s offers in-house bond approval authority and power of attorney, resulting in superior overall bond service. In addition to having strong relationships with most of Canada ‘s leading surety companies, Reid & Bradley’s provides creative solutions to the contractor’s bonding needs as they relate to bonding capacity/limits, the general terms of the bond facility (including rates and security), financial reporting, large/special projects, growth, succession planning, joint ventures, sub trade bonding, estate/family planning, and claims/disputes.
Bradley’s Insurance Group is committed to the Construction community and are active members in the Ottawa Construction Association (OCA), National Capital Heavy Construction Association (NCHCA), and Landscape Ontario.
If you’re interested in exploring opportunities for bonding with Reid & Bradley’s Commercial Insurance, please contact:
Daniel Reid, President
(613) 834-4677 ext. 2276
An Overview Of Products Available
Contract Surety Bonds
This type of bonding is usually required of general contractors on public projects, but many subcontractors also find that they are being asked to provide bonds. An increasing number of private project owners are requiring them.
A surety bond is an instrument under which one party guarantees to another that a third party will perform a contract.
The most common forms of Contract Surety Bonds are:
- Bid Bonds
- Consents of Surety
- Performance Bonds
- Labor & Material Bonds
- Multi-Year Renewable Bonds
- Pre-qualification Confirmation Letters
Commercial Surety Bonds
Commercial Surety Bonds cover some of the bond types considered necessary for government regulations or statutes related to the courts.
The most common forms of Commercial Surety Bonds are:
- Fiduciary Bonds
- License & Permit Bonds
- Customs & Excise Bonds
- Court Bonds
- Lost Document Bonds
- Consumer Protection Bonds.
These bonds support large development companies that wish to provide bonds rather than a letter of credit to secure their residential development obligations to municipalities or corporations.