FAQ about Surety Bonding

What is the process to set up a bonding facility?

• Initially, we start with an application and the minimum required financial information.
• Depending on the information contained in these documents, we may need more financial information and/or business experience information.

What information is needed to start to the application process?

• We require a copy of the latest accountant-prepared financial statement.
• The latest copy on in-house income and a balance sheet with same date aged listing of accounts payable and accounts receivable.
• A completed contractor’s questionnaire.
• A completed work on hard report matching the latest in-house statements.

What is the timeline to get a bond facility set up?

• The review process takes 2–3 days. If everything is aligned, we can set up a bonding facility within a week. If more information is needed, it could take up to two weeks.

What is the cost?

• The annual cost to have a bonding facility is $1,500. There is no extra cost for additional bid bonds.
• Should you require final bonds for a successful bid, the typical costs are:
  • Performance Bond $6/$1,000 of full contract value
  •  Labour and Material Bond $4/$1,000 of full contract value

Additional Information:

• To set up bonding, the company must have a minimum of $50,000 working capital and tangible net worth:
  • Positive equity and profitability
  • Experience completing the jobs you will be bidding on.
• Once a facility is set up, we will require updated information every quarter:
  • In-house income and balance sheet.
  • Same dated aged listing of accounts payable and accounts receivable.
  • Updated work on hand report.
• Annual accountant-prepared financial statements on review engagement basis.

If you have any questions or wish to start the application process, contact us by phone at 306.757.1633, email at hwicommercial@harvardwestern.com, or check out our Surety Bond options online.

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