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A Paperless Solution to Construction Surety Bonds


In keeping with the growing trend toward automation, the construction, surety and broker industries are continuing to explore the use of technology to enhance the level of service provided to their clients and to streamline their administrative processes. Many tenders now include a provision to supply an electronic bond (e-bond) with an electronic tender (e-tender) so it becomes extremely important to provide the correct form to ensure a compliant bid.

In simple terms, an e-bond is an electronic document created with security features that allows the receiver to confirm it is a valid bond. It is not simply a scanned copy of an executed bond issued under the traditional paper method.

From a technical standpoint, the technology to create, record, execute and deliver electronic bonds is now available. There are several platforms/software programs available to support this process, but it is important that the end-user trusts the process and is assured the “document” received is as valid as any paper equivalent.

The Surety Association of Canada advises “it’s crucial that any electronic document received meet three threshold criteria”:

Integrity of Content

The assurances that the document received is the true document executes and the content has not been changed or altered.

Secure Access

Restricting the access to the document to those authorized to view and/or download it.


Assurance that the document was duly executed by the parties identified and that it is enforceable in law.

All of Rhodes & Williams surety companies strongly support the automation of bid submissions as it benefits all those involved in the tendering process. It’s about doing business more effectively and efficiently with less cost and waste.

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