Ontario Construction News staff writer
The Surety Association of Canada (SAC) says it has released updated standard bond forms. This new suite of documents are available for use immediately and includes updated 2021 versions of the SAC Bid Bond, Performance Bond, and Labour and Material Payment Bond.
“The 2021 bonds build on the innovations found in some of the earlier standards and introduce improvements and updates that will provide owners and claimants with more responsiveness and clarity,” SAC president Steve Ness said in a statement last Tuesday (May 11).” he said.
Ness said that while SAC still supports and endorses the published bond documents of the Canadian Construction Documents Committee (CCDC) as the broader industry standard, the association recognizes that the current CCDC editions are very much out-of-date, having last been updated in 2002. He suggested that new SAC standards will provide users across the country with a responsive and upgraded surety option until CCDC completes its renewal process.
“We will continue to work with CCDC and other industry partners to bring about a better industry standard that reflects current conditions in the construction and surety marketplace,” Ness said..
SAC says the 2021 bond forms incorporate a number of key features that bring more certainty to the claims process and allow for more communication and collaboration between owners and sureties.
The new Bid Bond creates more certainty by removing several ambiguous terms and concepts. The Performance and Payment bonds provide more clarity by importing and enhancing much of the language found in the new standard bond forms that have been prescribed under the Construction Act of Ontario.
Ness said the SAC 2021 bond forms represent the most up-to-date and effective surety instruments available, but he acknowledged that the process is ever evolving. “We’ll continue to keep our ear to the ground and be ready to make the necessary changes to keep our products current and relevant.” he said.
More information about the SAC 2021 bond forms, and to access to template versions of the bonds, can be found on the SAC website at: https://www.suretycanada.com/SAC/Surety-Bonds/Contract-Surety/SAC-Bond-Forms/SAC/Surety-Bonds/SAC-Bond-Forms.aspx.