Consent of Surety
Agreement to Bond for Contract Tenders
If you need a Consent of Surety (also called Agreement to Bond) for a project tender that is coming up, then you’ve come to the right place! We provide full contract bonding services to clients of all types of contracts. The ability to provide a Surety’s Consent is part of a service called a Bond Facility.
A Bond Facility includes the ability to provide Performance Bonds, Payment Bonds and any other surety document that may be required by a project owner.
What is a Consent of Surety?
A Consent of Surety is a bond document used during the tender phase of a contract up for bid. It is often used in conjunction with a Bid Bond, but can be issued on a stand-alone basis as well. It is a third party guarantee that confirms a Surety company is willing to fulfill future bonding requirements on a specific contract if the bidder’s proposal is accepted.
Why do I need a Consent of Surety?
A Consent or Agreement to Bond is required by many project owners for significant sized contracts – typically in the $100,000+ range. These can be municipal contracts and in the public sector, but also private owners may look to a Surety’s Consent for risk mitigation.
From the owner’s (also called an Obligee) perspective, requesting a Consent of Surety during the tender phase of a contract will ensure that those bidding on the project will be able to provide what we call “Final Bonds” if they are low bidder. Final Bonds are typically Performance Bonds and Labour & Material Payment Bonds.
How much does a Consent of Surety cost?
The cost of providing a Consent of Surety is… free – great, right? Well, it’s free once you have your Bond Facility setup. So what is a Bond Facility? Think of it as an annual subscription for the ability to provide the different bonds your business needs throughout the year.
A Bond Facility typically has a cost in the range of $2,500 – $5,000 per year depending on various Underwriting parameters which include, but are not limited to:
- Financial Position of your Company
- Personal Financial Position of Shareholders
- Character of the Shareholders
- History of your Business
- Previously Completed Contracts & General Success
- Capacity & Competence of Staff
Is a Consent considered a Construction Bond?
Yes. A Consent can be considered a Construction Bond; however, they are utilized in other industries as well. It is a risk management tool often leveraged in the construction industry. It guarantees during the tendering stage, via a legal commitment, that a bonding company will issue the final bonds on a specific construction project.
What other types of bonds are available?
Besides a Surety Consent, typical Surety Bond requirements like a Bid Bond can almost all be provided through your Bond Facility, these include but are not limited to:
E-Bonding
We always have the capability of providing verified “E-Bonding” that is in compliance with the Surety Association of Canada’s required criteria outlined here.
Issue Consent of Surety needed by your company
Issue Final Bonds like a Performance Bond
Reliable Canadian Underwriters
Verified E-Bonds
Annual Facility Renewal
How It Works
Step 1
Complete a brief online application about your business and specific bond requirements.
Step 2
Our expert staff will guide you through the process of obtaining the bonds you need.
Step 3
Have the surety bonds you need issued so you can get back to running your business.
Why Should My Business Be Bonded?
As a business owner, you’re always looking for ways to protect your company’s interests. One important way to do this is by getting bonded. A
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