Bonding for Subcontractors in Ontario: How to Get Approved and Win Better Work
Subcontractors often assume bonding is only for general contractors. That is no longer true.
In Ontario, many general contractors now require key trades to carry bonding for specific scopes, especially on higher risk work, critical path trades, and large institutional projects. Across Canada, this trend is growing because owners and generals want fewer performance surprises.
If you are a trade contractor in Ontario, bonding can be the difference between being invited to bid and being replaced.
When subcontractors are asked for bonds
• High value trade packages on public work • Critical path scopes such as electrical, mechanical, roofing, glazing, and envelope trades • Projects with strict owner oversight and tight schedules • Work that carries high warranty exposure • Projects where the general wants protection against trade default
What sureties look for in trade contractors
Surety underwriting still focuses on credit and control, but trade contractors can be approved with the right presentation.
Key factors include:
• Consistent profitability and clean financials • Strong receivables and collections discipline • Proven experience on similar scope and size • Solid supervision and project controls • A backlog schedule that shows you are not overloaded • Clear safety practices and quality control
The fastest way subcontractors get rejected
• Financial statements are incomplete or outdated • The requested bond size is a big jump from prior projects • Backlog is concentrated in one project or one general contractor • Margins are volatile and job costing is weak • Owner draws strain liquidity
How to make trade bonding easier in Ontario
1. Start with the right program size Do not request a limit that forces an unnecessary decline. Build up.
2. Document your completed projects Sureties want evidence, not claims.
3. Keep a simple work in progress schedule It shows capacity and discipline.
4. Align your insurance certificates and contract readiness Bonding is often reviewed alongside your liability and auto limits.
FAQ
Can a subcontractor get bonding without a large balance sheet Sometimes, especially if the owners have strong experience and the program is structured appropriately.
Do I need bonding for private work in Ontario It depends on the general contractor and the owner. Many private projects now request bonding for key scopes.
How quickly can a trade bond be issued With an established surety program, issuance can be fast.
Trade Bond Pre Qualification
If a general contractor in Ontario has asked you for bonding, we can pre qualify you quickly. Send your last year end financials, a list of completed projects, and the bond amount requested. We will tell you what is realistic and how to secure approval.