The bond families
Every surety bond falls into one of these families. Start with the one that matches your client.
| Family | Typical bonds | Who asks for them |
|---|---|---|
| Contract surety | Bid, performance, labour and material payment, tender security | Public and private project owners, general contractors |
| Commercial surety | CARM RPP, customs and excise, licence and permit, lost document | CBSA, CRA, provincial regulators, transfer agents |
| Court and fiduciary | Estate, guardianship, fiduciary | Courts and the Public Guardian and Trustee |
| Development | Developer bonds, Tarion bonds | Municipalities, Tarion |
| Cross-border | USA bonding program | US owners, agencies and regulators |
Contract surety in brief
Three bonds carry most bonded construction work. A bid bond, typically 10% of the bid, guarantees the bidder will sign the contract if selected. A performance bond, usually 50% of the contract value, guarantees completion. A labour and material payment bond, usually 50%, guarantees subtrades and suppliers get paid. The standard Canadian forms are CCDC 220, 221 and 222, updated in 2024.
In Ontario, section 85.1 of the Construction Act requires performance and payment bonds on public contracts of $500,000 or more. Read the full contract bonding guide.
Commercial surety in brief
Commercial bonds guarantee compliance rather than construction. Since CARM, every commercial importer using release prior to payment posts its own security with CBSA. Excise licensees, non-resident GST registrants, licensed businesses and court-appointed fiduciaries all post bonds as a condition of doing what they do. Most commercial files are shorter than contract files, and the amount is often set by the obligee's formula. Read the full commercial surety guide.
How a bond request moves
- You send the requirement. The tender, form, order or letter, plus what you have on the client.
- An underwriter reads it. You hear what the file needs, and what is missing, early.
- Terms come back. Bond amount, premium, indemnity and any conditions, set from the file.
- The bond issues. On paper, electronically to CBSA, or in the obligee's portal, as the obligee requires.
- We stay on it. Renewals, increases, riders and releases come back to the same desk.
Every bond is subject to underwriting. Capacity, terms and premium are set from the file, and nothing on this page is a commitment to issue a bond.
Why brokers send surety to Approved
- A surety specialist, with contract and commercial desks under one roof.
- Underwriters who read tender packages, CBSA memos and court orders every day.
- Help with first bonds, fast growers, thin files and declines from other markets.
- Canada-wide outside Quebec, with Surwest Surety Source in Calgary and a USA bonding program.
