RBQ licence bonds
Whether to comply with Régie du bâtiment du Québec (RBQ) requirements or to respond to public tenders, construction contractors regularly need surety contracts of guarantee.
RBQ Licence Bond
The Régie du bâtiment du Québec’s licence bond, compulsory for all contractors, is designed to compensate any customer who suffers damage due to the execution or non-execution of construction work. The required bond varies from $20,000 to $40,000 — an amount that can strain your bankroll. At J Gérard Fortin, we can help you find a surety contract that will cover you while preserving your cash flow.
Many calls to tender require the bid bond to cover the difference between the principal's tender price and the next highest tender price in the event that the principal is awarded the contract but fails to enter into the contract with the obligee.
A bid bond is usually accompanied by a guarantee to ensure the obligee that the surety company will provide the deposit required if its client (the principal) is awarded the contract.
The performance bond guarantees the obligee that the work will be carried out as per the terms of the contract. Should the principal defaults, the surety will pay to complete the contract or cover the penalty specified in the contract. This type of bond is particularly popular with facility owners since it protects against any default on the part of the principal (the contractor engaged to perform the work).
Labour and Material Payment Bond
This bond ensures the obligee that the principal (contractor) will pay all sub-contractors and suppliers in keeping with their respective agreements, ensuring that no legal mortgage will encumber its property.
This type of bond is similar in every respect to the performance bond, but refers
only to the delivery of materials, under the provisions of the contract.
The maintenance bond guarantees that the contractor will conduct all
maintenance work stipulated in the contract for the duration of the specified