ClickCease The three types of construction bonds | Article

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