Bid Bonds in Ontario: How to Win More Tenders Without Getting Disqualified
Many contractors lose bids in Ontario for one frustrating reason. The bid package is incomplete. Price is not the issue. Experience is not the issue. Paperwork is.
Bid bonds are commonly required on municipal, provincial, and institutional tenders across Ontario, and on large private projects where owners want assurance that bidders will honour their price and sign the contract.
This article explains what a bid bond does, why it is required, and how to build a bid process that prevents last minute bonding problems.
What a bid bond actually guarantees
A bid bond is a promise that if you are awarded the contract, you will:
• Enter into the contract at your bid price • Provide the required performance and payment security • Not walk away after being awarded
If you fail to do that, the bond can respond up to the bond amount, often a percentage of your bid.
Why Ontario owners require bid bonds
Bid bonds reduce gamesmanship in tendering. They discourage bidders from submitting unrealistic pricing and then refusing to sign.
They also protect owners from the cost of retendering, schedule delays, and price escalation if the winning bidder fails to proceed.
The most common bid bond failure points
• Contractor is not pre qualified with a surety • Financial statements are outdated or incomplete • Backlog is higher than the surety is comfortable with • The project size is a big jump from prior work • The request comes too late to underwrite properly • The bid form has special bond wording that was not reviewed
How to make bid bonds easy
1. Get a standing surety program in place If you bid often, you want a program that allows quick bond issuance for routine work.
2. Create a bid intake checklist Bonding is part of estimating, not a last step.
3. Share the tender documents early Special terms should be reviewed before bid day, not after.
4. Keep your backlog schedule current Sureties care about total workload and concentration.
What to send your broker for fast bid bonds
• Tender documents and bond wording • Bid amount and closing date and time • Project location in Ontario or other provinces • Your current backlog and key jobs in progress • Any joint venture or subcontractor structure details
FAQ
How much is a bid bond in Ontario Bond amounts vary by tender. Many are expressed as a percentage of bid value.
Does a bid bond cost money Yes, but it is typically part of a broader surety program and priced with your overall relationship.
Can I get a bid bond for a first time tender Sometimes, but underwriting will focus heavily on your financials and relevant experience.
Tender Bond Express Service
If you have a tender due in Ontario, send us the bid form, bond wording, and closing time. We will confirm feasibility, flag issues that could disqualify you, and move the bond request quickly.