We are very proud to announce that as of May 2019 we have successfully become a bonded Contractor per the requirements set forth and administered by the Surety Association of Canada. Burnaby Blacktop is now able to offer surety bonds under the terms of both contract and commercial surety.
The Association strongly recommends that organizations purchasing contracting/construction services require the contractors to provide surety bonds issued by insurance firms that are duly licensed in the province where the work is occurring. A non-bonded construction enterprise is ten times more likely to become insolvent than bonded companies. This fact serves to show what significant benefit enterprises both public and private, can gain by dealing with a Bonded construction firm.
By completing the rigorous requirements of the surety risk selection process, a qualified firm becomes Bonded and is thus identified as having achieved significant risk mitigation and financial security. Such firms are then permitted to undertake public and private work that stipulates being Bonded as a requirement of the contractor bidding process — however, the consequent economic benefits that result from this certainty around the construction delivery process benefit all customers.
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Surety bonds protect the obligee (the party to whom the bond is payable in the event of default) against losses up to the limit of the bond. This provides significant financial security and construction assurance to project owners by verifying that, the contractor is capable of performing the work and will pay designated subcontractors, labourers, and material suppliers. This can be especially important on public projects where taxpayers’ dollars are at risk.
A performance bond is a specific type of bond that provides guarantees that the bonded contractor will perform its contractual obligations in accordance with the contract’s terms and conditions. A performance bond gives the contracting party peace of mind that despite a failure of the contractor, a completed project will be delivered per the terms and conditions of the original contract.
Labour and material payment bond provides assurance that the company providing the surety will pay any claims for goods and/or services supplied for the bonded project if the principal defaults. Generally, a claimant under a labour and material payment bond is a subcontractor or supplier who has contracted directly with the bonded contractor to supply goods or services to the bonded job.
As a bonded contractor Burnaby Blacktop offers the same great work quality that we have always provided, our corporate warranty on paving services, and now with the assurance of providing a surety bond when required.