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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