Surety Bonds

Surety bonds are financial instruments commonly used in the construction industry to provide assurance and financial protection during the bidding and execution of construction projects.

Bid Bonds and Consent of Surety:
Bid bonds are submitted by contractors along with their bids for construction projects. These bonds provide financial assurance to the project owner that the contractor will enter into a contract and perform the work at the bid price if selected as the winning bidder.

A consent of surety is often used in conjunction with a Bid Bond, but sometimes on its own as well. It provides assurance to the owner of the project that the Surety company will issue the required bonds in the even the contractor is successful on the bid.

Final Bonds:
The required bonds under Consent of Surety are often referred to as "Final Bonds" and apply directly to the project in question. These bonds commonly include Performance Bonds as well as Labour & Material Payment Bonds.

A performance bond guarantees that the contractor will complete the project according to the terms of the contract.

A labour & material bond ensures that the contractor will pay subcontractors, labourers, and suppliers associated with the project.

Surety bonds provide financial protection to the project owner in case the contractor fails to meet their contractual obligations, covering both project completion and payment to subcontractors and suppliers.

SAC BID BOND 2021
Standard surety bid bond form guarantees the bidder’s intention to enter into a formal contract and to provide the specified contract security if the bid is accepted.

SAC PERFORMANCE BOND 2021
Standard surety performance bond form guarantees performance of the contract by the Contractor.

SAC LABOUR AND MATERIAL PAYMENT BOND 2021
Standard surety labour and material payment bond form guarantees that the Contractor will satisfy all labour and material payment obligations incurred in performing the contract.