ClickCease The three types of construction bonds | Article
Type choices :
Strictly necessary cookies

These cookies are essential to provide you with services available through our website and to enable you to use certain features of our website. Without these cookies, we cannot provide you certain services on our website.

Functionality cookies

These cookies are used to provide you with a more personalized experience on our website and to remember choices you make when you use our website. For example, we may use functionality cookies to remember your language preferences or remember your login details.

Tracking cookies

These cookies are used to collect information to analyze the traffic to our website and how visitors are using our website. For example, these cookies may track things such as how long you spend on the website or the pages you visit which helps us to understand how we can improve our website site for you. The information collected through these tracking and performance cookies do not identify any individual visitor.

Targeting cookies

These cookies are used to show advertising that is likely to be of interest to you based on your browsing habits. These cookies, as served by our content and/or advertising providers, may combine information they collected from our website with other information they have independently collected relating to your web browser's activities across their network of websites. If you choose to remove or disable these targeting or advertising cookies, you will still see adverts but they may not be relevant to you.

The three types of construction bonds

Every major construction project requires the establishment of guarantees, such as sureties or sureties, in order to protect the project owner and the other entities involved, such as subcontractors and suppliers. In Quebec, only insurance companies licensed to offer insurance can issue construction bonds. However, the scope and use of these safeguards often remains ambiguous for many.

Three types of bonds prevail in major construction projects:

The bid bond

It aims to guarantee that the tenderer will respect his commitments when responding to a public call for tenders.

The performance bond

It serves to ensure that the entrepreneur honors his contractual obligations.

The payment bond for labor and materials

It ensures the payment of invoices from subcontractors and suppliers, thus minimizing their risk of resorting to a legal mortgage on the property concerned.

Our expertise in surety bonds in the construction sector has been recognized for many years. She relies on our experience, in particular by advising various insurers in the surety sector, as well as by defending the rights of entrepreneurs and real estate developers, whether before the courts or during mediations and arbitrations.

Consult a construction litigation lawyer today.

  • Representation and assistance in construction disputes
  • Strategic analysis of contentious cases
  • Formal notice in the event of a contractual dispute
  • Action on account in case of non-payment