2016-04-11 1:45 PM

Electronic Bonds - The Future Or The Present

Is it me, or is technology sneaking up on us faster and faster than we had anticipated? It would seem that Electronic Bonds (used by Contractors in the bidding process) is one of those technologies whose day has come.

As an Insurance Broker specializing in Construction Clientele, our Insurance Brokerage has embraced the ability to start replacing the traditional paper Surety Bonds with a digital or electronic version, which allows Contractors the ability to attach a fully secured and verifiable Tender Document (Bid Bond and/or an Agreement to Bond) to their bid which is fully compatible with most of the more popular tendering platforms being used by both Government and the Private sector today.

It seems like yesterday that St. Andrews Insurance Brokers participated in a mock bid put on by the City Newmarket along with two of our Construction Clients, but that was about two years ago. Aside from a rare bid here and there I didn't see or expect that the Electronic Bonds would be widely accepted and required in formal tenders. But over the last couple of months we have witnessed what I believe is the start of a  what is likely going to be the evolution of the use of Tender Bonds. Many examples of Owners building in the Electronic Bond into their tender requirements can be seen recently by The Regional Municipality of York Region, The City of Newmarket and OCAD, to name a few. My understanding is that Defense Construction will also be requiring Electronic Bonds on their upcoming public tenders.

If you are a Contractor who regularly bids on government/ public projects requiring Bid Bonds and Agreement to Bonds, then you really need to ensure that you align yourself with a Broker, like St. Andrews to walk you through the process of being able to use both Paper Bonds and Electronic Bonds. The future in Bonding has arrived.


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