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Commercial Surety Solutions
Securing your Commercial Construction Project
SURETY COVERAGE
Surety bonds provide protection for the project owner, contractor, or supplier if the bonded party does not fulfill their contractual obligations.
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A surety bond involves three key parties: the principal, the obligee, and the surety.
01 The principal: entity that performs and secures the surety bond to guarantee the completion of contracted work
02 Obligee: party who’s requiring the principle to purchase and secure the specific surety bond.
03 The Surety: organization issuing the surety bond. The surety provides the financial guarantee for the principal’s ability to complete the contracted work.
Various surety bonds are available for construction projects, including bid, performance, and materials & labor bonds.
At the tendering stage of a contract, a Consent to Surety is commonly requested with a bid bond. This often sealed document, confirms that a surety company has committed to providing a performance bonds along other bonds, such as labour and material payment bonds, in support of a successful tender.
A Performance Bond guarantee’s that the contractor will fulfill the work as outlined in the contract
This bond is commonly requested with a performance bond in contract agreements. This bond assures that all subcontractors and material suppliers will receive payment as specified in your contract.
THE PROCESS
Understanding the specific type and amount of bond required by the obligee in a contract is important before obtaining a surety bond. The application process typically involves:
01 Assessment and Approval will involve submitting financial documentation and proof of prior project history to prove your creditworthiness and ability to meet the terms of the surety bond. Additionally, you’ll need to provide project specifics covered by the bond.
02 Risk Analysis The risk will be underwritten by MIC and assessed to bond you
03 Bond Delivery Upon approval, a sealed and signed bond from the surety will be issued for you to sign and deliver to the Obligee.
FOR BROKERS
#200, 2457 Broadmoor Blvd
Sherwood Park, Alberta
T8H 0Y6
Main Office
Phone: 780-467-1500
Fax: 780-467-0004
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