As a result of mass internet access and the growth of trustworthy multi-national banking institutions, Canadian contractors are more likely than ever to consider accepting projects across the border and into the United States. Bonding in the United States is much more common than it is in Canada, so if you plan on crossing the border, your US bond facility is of utmost importance. You need to be matched with a bond company that can write bonds both in Canada and the United States.
The challenges associated with cross border surety bonding are more complex and the bond company’s perceived risks are much higher. FCA has the surety partners with the capabilities, experience and comfort level required to bond both in Canada and the US. We are proud members of the National Association of Surety Bond Producers, which is comprised of the industries’ top brokers.
However with many more variables to consider, the stakes are much higher. You need to know that your broker is up to the task and has the knowledge and experienced to negotiate a bond facility that leaves you without any surprises.
Export Development Canada (EDC)
More and more buyers are asking for bonds to ensure that you can meet your obligations. Bonds for contracts in other countries are sometimes difficult to obtain. EDC is mandated to help exporting Canadian companies and may be the right option for you when it comes to bonding and performance guarantees. FCA has an excellent working relationship with EDC and we are able to approach them on your behalf. If you have run out of options in the private market, let us look into what EDC can do for your cross border surety bond requirements. They offer a wide range of little-known solutions that can mean the difference in getting a contract.
United States Agents
With the increase in government spending on major infrastructure projects across Canada, the opportunity for a United States domiciled contractor to work north of the border has never been more prevalent. For an American based agent, establishing a Canadian surety facility can present challenges. Things like provincial licensing, legal differences and of course access to Canadian surety bond markets are hurdles that can inhibit your clients access to the Canadian market.
FCA has experience working with U.S Agents to facilitate their client’s surety needs in Canada. Whether you simply need a broker to help issue bonds in Canada or you need help establishing a bond facility for your client, we can help. We are licenced in every Canadian province including Quebec and our surety experts are fluent in both English and French. We are a privately owned Canadian brokerage with no intention of doing business in the United States so you can rest assured that we will co-operate, not compete.
United States Contractors
Our bond department is structured to meet the needs of U.S. based companies and independent contractors – private and public – who intend to carry out work in Canada. We can provide you with the bonds you need to secure contracts with the Government of Canada and all Canadian Provinces and Municipalities including their boards and agencies. We are partnered with all the major Canadian carriers and if you need help establishing a bond facility north of the border, we are experienced and able to help with your specific needs.
International Surety Bonding
Opportunities to work in other countries that present themselves may require surety bonds to guarantee certain obligations. International surety bond underwriting presents significant obstacles. For the contractor performing abroad, the chief concerns are the extraordinary geographic footprint and the trustworthiness of the legal forums in which disputes may be settled. The ability of the bond company to accept international indemnity agreements comes into play, and not every bond company is able to do so. Some of the more common bonds and guarantees requested are Bid/Tender Bonds, Performance and Payment Bonds, Advance Payment Bonds, Maintenance and Warranty Bonds, On Demand Bonds, Customs and Miscellaneous Bonds.
As surety bond specialists, FCA Surety can customize facilities to match your company’s bond requirements. We work with both private and public companies, and are able to offer support for our clients seeking surety bonds and commercial bonds on a global basis.