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1-888-467-8989

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Building Trust

Surety
Bonding

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Surety bonding is a powerful financial tool that protects project owners and supports contractors by guaranteeing the fulfillment of contractual obligations. A surety bond forms a three-party agreement between the contractor (principal), the project owner (obligee), and the surety company. This agreement ensures that if the contractor fails to meet the terms of the contract, the surety will step in to cover financial losses or arrange project completion.

At Ferrari & Associates, we understand the challenges contractors face when trying to grow their business. Expanding into larger or more complex projects can be the key to long-term success—but only if you have the right support in place. That’s where surety bonding becomes essential.

Contract surety bonding includes several key types of bonds that play a critical role in construction and service contracts. These include bid bonds, performance bonds, and labour and materials payment bonds. For example, if you’re bidding on a major infrastructure job, a bid bond shows the project owner that your proposal is serious and financially backed. If you’re awarded the contract, a performance bond guarantees that the work will be completed according to agreed terms. Labour and materials payment bonds protect subcontractors and suppliers by ensuring they are paid on time.

For growing contractors, surety bonding isn’t just a requirement—it’s a strategic asset. It strengthens your reputation, reduces risk for project owners, and opens doors to bigger opportunities. At Ferrari & Associates, we help you secure the surety bonds you need quickly and efficiently so you can focus on what matters most: delivering excellent work and growing your business with confidence.
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Surety Bonding Experts

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Surety Bonding doesn’t just protect project owners—it also opens doors for contractors to take on larger projects and expand into new markets. Many public and private sector projects require bonding, making it a vital step for growing your business.

Ferrari & Associates works closely with contractors to simplify the bonding process. With expert guidance and tailored solutions, we help you secure the bonds you need to achieve success—financially and reputationally.

Surety Bonding Specialties

Contract Surety
Bonds


Used in the construction industry to guarantee that a contractor will fulfill their contractual obligations.

Contract Surety Bonds

Bid Bonds
Performance Bonds
Labour & Material Payment Bonds
Maintenance Bonds
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Commercial Surety
Bonds


Often required by government or regulatory bodies for licensing, compliance or public protection.

Commercial Surety
Bonds

License & Permit Bonds
Customs & Excise Bonds
CBSA CARM Bonds
Court Bonds
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Developer Surety
Bonds


A financial guarantee that ensures a real estate developer will complete the required work.

Developer Surety Bonds

Subdivision Bonds
Tarion Bonds
Excess Deposit Insurance
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Surety Bonding helps Canadian contractors build trust & guarantee their contractual obligations.

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What is a Bonding Facility?

Bonding Facility

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Ferrari & Associates understands that for contractors, having access to a bonding facility is essential to growing your business and unlocking new opportunities. A bonding facility is an arrangement between a contractor and a surety company that establishes the contractor’s capacity to obtain surety bonds for their projects. Think of it as a pre-approved line of credit but for bonds, offering you the flexibility and assurance needed to tackle larger and more complex jobs.

How a Bonding Facility Works

A bonding facility provides contractors with pre-approved access to bid bonds, performance bonds, and labour and materials payment bonds. The surety company evaluates your business’s financial strength, operational capacity, and track record before approving the facility. This evaluation ensures that your company has the resources and expertise to meet its contractual obligations. Once established, a bonding facility allows you to request bonds for specific projects quickly, without undergoing a lengthy approval process each time. The facility is typically tailored to your business, including limits on the total bonding capacity (the aggregate limit) and the maximum value of a single bond (the per-project limit).

How to Secure a Bonding Facility

Establishing a bonding facility involves a thorough assessment of your business by the surety company.

  • Financial Statements – A strong balance sheet, consistent cash flow, and profitability are key factors in approval.
  • Experience & Track Record – A proven history of completing projects on time and within budget boosts your credibility.
  • Operational Capacity – Suretie want to see that your team has the expertise and resources to handle the projects you’re bidding on.

Ferrari & Associates works closely with contractors to guide them through the process, ensuring their financial and operational strengths are presented effectively.

How to Maximize the Benefits of Your Bonding Facility

A bonding facility is more than just an approval process—it’s an ongoing relationship with your surety company. By maintaining strong financials, completing projects successfully, and communicating proactively, you can maximize your facility’s benefits. Ferrari & Associates is committed to helping contractors navigate the complexities of bonding facilities. With expert guidance industry insights, and access to over two hundred types of bonds, we have the power to empower you to secure the capacity you need to grow your business confidently and competitively. Let us help you take the next step toward success

Benefits of a bonding facility

Access to larger projects

Many public and private sector contracts require bonding as part of the bidding process. A bonding facility ensures you can confidently bid on larger and more lucrative projects.

Demonstrates financial stability

Your bonding facility approval signals to project owners that your business is financially sound and capable of fulfilling complex contractual obligations.

STREAMLINED bond issuance

With a facility in place, you can obtain bonds for new projects quickly and efficiently, saving time and helping you meet tight deadlines.

SUPPORTS BUSINESS GROWTH & TRUST

Sureties will review your performance regularly, and a strong track record can lgrow with you and lead to increased capacity over time.

*The information provided on this page is for information purposes only and should not be taken as surety advice. For actual surety advice, please contact Ferrari & Associates at 1-888-467-8989

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Surety Bonding Thought
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We are dedicated to ensuring you find the ideal construction insurance coverage tailored to your construction business needs. Our team of expert insurance brokers pride ourselves on our ability to provide flexible and customized solutions for a variety of unique circumstances and niche construction industries.

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