Surety bonds on Alberta construction tenders are three-party agreements: principal (you), obligee (the municipality), and surety. Bid, performance, and labour-and-material payment bonds are the usual set. They are underwritten like credit, not sold like a $50 alert subscription. Arrange them through a construction surety broker before you chase bonded civil work.
Surety bonds on Alberta municipal construction
Cities and counties use bonds to protect public funds if a contractor defaults or fails to pay subs. Thresholds and percentages are in each ITT. Private commercial work may use different security. Do not copy a Calgary clause onto a town package without reading it.
Are bonds mandatory on all municipal work?
No. Many snow, landscaping, and small facilities quotes skip bonds or use a holdback only. Civil, paving, and larger construction packages are where surety shows up.
Who are typical obligees?
The City of Calgary, The City of Edmonton, Red Deer, Strathcona County, Rocky View County, and other MASH buyers named in the tender. Name the obligee exactly.
Getting set up as a small contractor
Pick a broker who places construction surety in Alberta. Provide financial statements, a work-on-hand list, and resumes of key people. Expect questions. This file is part of bid-readiness, alongside COR and insurance.
Can I use a US surety form?
Not if the RFP specifies CCDC Canadian forms. US AIA bonds are a common fail when a firm bids both sides of the border.
How does this relate to insurance?
Bonds are surety. Insurance is risk transfer (CGL, auto, umbrella). Municipal RFPs ask for both. Mixing certificate language with bond forms is a paperwork error we catch in audits.