E-Bonding ─ A Paperless Solution to Construction Surety Bonds
In keeping with the growing trend toward automation, the construction, surety and insurance broker industries continue to explore the use of technology. The capability to create, record, execute, and deliver a digital bond over a paper bond has started. Tenders may include a provision to supply an electronic bond (e-bond) with an electronic tender (e-tender).
An e-bond simplifies the process and includes security features that validate the bond; it’s not simply a scanned copy of an executed bond issued the traditional way. The results are enhanced service levels and streamlined administrative practices.
There are various platform providers that support the e-bond and e-tender process. Set-up is easy but must be activated before you can start submitting bonds digitally. Speak to your insurance professional to start the process.
The Surety Association of Canada advises “it’s crucial that any electronic document received meet three threshold criteria”
- Integrity of Content
Assurances that the e-bond received is the true document and has not been changed or altered - Secure Access
Access is restricted to those authorized to download or view - Verifiability/Enforceability
Assurances that the e-bond was duly executed by the parties identified and is enforceable in law
At Rhodes & Williams, our surety markets support the automation of bid submissions as it benefits everybody involved in the tendering process. It’s about doing business more effectively and efficiently with less cost and less waste.