Prepaid Contractors Bond Alberta
General Surety Bond $10,000+
A Prepaid Contractors Bond Alberta is a type of General Surety Bond that is a required to obtain your prepaid contracting license in the province. These bonds are often in relatively small amounts as far as surety bonds go (typical security $10,000 to $75,000) and protect Alberta’s regulatory bodies from bad actors in their respective industries.
We’re able to offer simple and quick online applications, approvals, and payments for Prepaid Contractors License Bonds in Alberta. At this time, Government of AB is still requesting original paper copies of the security, and your bond is mailed to an address provided by you.
What is a Prepaid Contractors Bond, Alberta?
A Prepaid Contractors Bond, AB is a three-party security agreement between the Principal, Surety Underwriter, and Obligee.
This bond ensures that the Principal adheres to all regulations and guidelines as required by Service Alberta, Consumer Programs. The bond acts as a guarantee & security that the Principal will fulfill its obligations operating as a contractor; and if not, the Surety will compensate the Obligee for any losses.
For clarity, the three parties involved are:
- The Principal – This is the entity, whether a company or individual, that is seeking the bond and is responsible for any losses that might occur under the terms of the security agreement.
- The Surety – This is the insurance company that provides the financial backing for the bond, ensuring that the Principal will meet its commitments.
- The Obligee – This is the party to whom the bond’s guarantee is made. For a General Surety Bond, it is typically Service Alberta – in accordance with the Consumer Protection Act of AB.
At Bond Connect, we pride ourselves in ensuring we align your contractual obligations with an appropriate surety company that will provide an adequate guarantee for your requirements.
The completed bond form (once purchase / issued by us) is to be provided to:
Service Alberta, Consumer Programs
3B Commerce Place, 10155 102 Street NEW, Edmonton Alberta T5J 4L4
Updated: June 24, 2024
Why do I need a Prepaid Contracting License Bond in Alberta?
General Surety Bonds, and specifically the Prepaid Contractors Bond, are often required by government entities to ensure that businesses or individuals adhere to specific regulations or fulfill certain obligations.
They act as a form of security to the Obligee against potential losses caused by the Principal’s failure to meet its commitments.
As a part of AB Prepaid Contracting License requirements, you must “Obtain and provide a General Surety Bond, Irrevocable Letter of Credit, or Cash (referred to as Security)”. It is most cost-beneficial to provide the surety bond and the annual cost per year is starting at only $375; this is typically preferred to tying up $10,000+ of equity / capital.
Can I get a continuous Prepaid Contractors Bond?
Yes, continuous Prepaid Contractor Bonds / General Surety Bonds are the standard type of guarantee issued for this type of security.
This continuous surety bond validity ensures that the bond remains in effect for as long as the Principal requires it, provided all terms are met and premiums are paid.
What types of businesses are the Prepaid Contractors Bond available for?
We are able to offer full service bonding across all industries, but these bonds are most commonly requested for the following sectors of contracting:
- Cabinetry
- Concrete Work / Paving / Foundations
- Counter Tops
- Custom Closets
- Decks
- Demolition
- Drywall / Plastering
- Electrical
- Excavation / Trenching
- Fencing
- Finish Carpentry
- Fireplaces
- Flooring / Floor Coverings
- Garages / Garage Doors
- Handyman Services
- HVAC Rentals / HVAC Sales
- Insulation
- Interior Decorating
- Landscaping
- Mold Remediation
- New Additions to Existing Home
- New Home Construction
- Painting
- Plumbing
- Project Management
- Roofing / Eavestroughing
- Rough Construction
- Security Systems
- Siding / Stucco
- Solar Panels
- Solar Water Heating Systems
- Stone Work / Masonry
- Sunrooms / Solariums
- Swimming Pools
- Tiling
- Underground Heating (Geothermal)
- Windows / Doors
- and more...
Which of these operations you offer will adjust the amount of security you need to provide.
Depending on the nature of the goods or services, changes in goods or services, the value and terms of your standard contract, the history of your business or directors, and other relevant factions, the Director of Services Alberta may set a higher security during either the application or renewal process of your license.
You can verify the minimum security amount you need to provide to Government of Alberta here.
If you’re unsure about which type of bond you require or have any other questions, don’t hesitate to contact us and a surety bond professional will assist you.
How much does a Prepaid Contractors Bond in Alberta cost?
The cost of any General Surety Bond, Alberta (including Prepaid Contractor Bond) depends on certain variables such as the bond amount, duration of the bond, and other unique applicant details.
As your surety broker, we will always strive to obtain the best rates available in the market for the bond you’ve requested. In Alberta, these bonds can be offered for as little as $375 per year, depending on the underwriting details mentioned above.
Filling out our application and pursuing a quote for the bond you require does not cost anything or mandate that you proceed with purchasing the bond once a quote is obtained. Client service and transparency for customers are our top priorities.
We use top AM Best rated surety providers like Trisura Guarantee and Intact Insurance.
What other kinds of bonds are available?
Whether it be construction bonds, performance bond, L&M bonds or any other financial guarantees, we’re here to help.
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.
$10,000+ Surety Bond
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