Secure Your Performance Bond Fast, From Contractors Who Know Construction
Guarantee Project Completion and Build Trust
Construction owners and developers need confidence that projects will be finished according to contract terms. Performance Bonds Canada provide a financial guarantee that contractors will complete work properly — even if unforeseen problems arise.
Protect your projects with trusted Performance Bond solutions — proudly serving contractors across Canada.
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What Is a Performance Bond?
A Performance Bond is a surety bond that guarantees the contractor will complete the construction project according to the terms and conditions of the contract.
If the contractor defaults or is unable to fulfill obligations, the surety steps in to complete the work or compensate the project owner.
Key protections a Performance Bond offers:
Assures the owner that the project will be completed even if issues occur
Provides financial recovery if the contractor fails to meet obligations
Transfers project risk to a highly rated surety company
Performance Bonds are critical on larger public and private construction projects across Canada.
Learn how Construction Bonds support every phase of major projects.
When Are Performance Bonds Required?
Performance Bonds are commonly required for:
Public sector construction projects (municipal, provincial, federal)
Major private sector developments
Infrastructure projects (roads, bridges, hospitals, public housing)
Public-private partnership (P3) projects
Projects where lenders require bonding to release funding
Performance Bonds are usually issued alongside Labour and Material Payment Bonds for complete project protection.
How Much Coverage Does a Performance Bond Provide?
Most Performance Bonds cover 50% to 100% of the total construction contract value.
Some owners or municipalities may request specific bond percentages depending on project size and complexity.
Explore Labour and Material Payment Bonds for complete subcontractor protection.
Why Contractors and Developers Trust Ai Insurance Organization for Performance Bonds
Construction Expertise
Decades of experience supporting contractors, builders, and developers across Canada.
Top Surety Markets
Access to Canada’s leading bond companies.
Fast, Reliable Service
Approvals within 24–48 hours for pre-qualified contractors.
Support for All Sizes
From emerging builders to national general contractors, we customize bonding solutions.
Build bigger. Build smarter. Protect your success with Ai Insurance Organization.
How to Qualify for a Performance Bond
Surety companies assess contractors based on the Three C's of bonding:
Character
Past performance, references, and leadership integrity.
Capacity
Ability to execute projects based on operational experience and systems.
Capital
Financial stability and resources to support bonded obligations.
Learn how to Strengthen Your Bonding Capacity and unlock more project opportunities.
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Frequently Asked Questions (FAQ)
Are Performance Bonds mandatory in Canada?
For public sector projects — yes. Performance Bonds are usually mandatory, paired with Labour and Material Payment Bonds, under provincial, municipal, and federal tendering rules. For private construction, they are often strongly encouraged.
Can small or emerging contractors qualify for Performance Bonds?
Absolutely. With strong preparation and financial organization, even growing contractors can secure Performance Bonds with Ai Insurance Organization’s support.
How much does a Performance Bond cost?
Premiums typically range from 0.5% to 3% of the contract value, depending on contractor strength, project size, and risk complexity.
Is a Performance Bond the same as insurance?
No. A bond is a three-party agreement (contractor, owner, surety), while insurance policies typically involve two-party risk transfers.
Learn more about how Construction Bonds work.
What happens if the contractor defaults?
The surety investigates. If justified, they either fund project completion or reimburse the project owner for damages — depending on bond terms.
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