The Advantages of Using “Standard” Bond Forms?
Some government bodies, and even private owners, use their own particular wordings, which they believe will augment the protection afforded by the bond. Experience has shown that such owner-generated forms are typically not well constructed and often reflect a misunderstanding of the role of suretyship and a Surety’s relation and obligations to owner and contractor. Ironically, this can lead to the protection being diminished rather than enhanced.
The CCDC and its constituent bodies continue to strive for adoption of CCDC standard bond forms as these forms were designed with the intent of being fair to all parties to the contract/surety relationship. In addition to the fairness and balance, standard wordings have compiled a history of solid legal precedent which has clearly defined the meanings of the various provisions of the document.
CCDC has the following standard bond forms:
- CCDC 220 – Bid Bond
- CCDC 221 – Performance Bond
- CCDC 222 – Labour & Material Payment Bond
CCDC has also developed CCDC 21 – 2016 A Guide to Construction Insurance which explains construction insurance policies and requirements in CCDC contract forms.
For a complete listing of documents and guides produced by CCDC, please visit their website HERE.
SAC has also developed standard bond forms that are available at no charge. CLICK HERE for more details.