Bonding is a financial guarantee that every licensed entrepreneur must file to ensure the performance of its contractual obligations to its customers.
All contractors must provide a license bond according to the Régie du bâtiment du Québec, with the exception of those who hold exclusively the subcategories of a general contractor’s license in new residential buildings accredited with a guarantee plan. This requirement provides added protection as it provides compensation to those who have been harmed by faulty performance or non-performance of construction work.
The bond offered by the ACQ is available to all contractors in the IC / I and residential sectors.
The license bond is intended to compensate any customer who has suffered a direct loss:
- Down payments
- Non-completion of work
- Defects and vices discovered in the year following the end of the work
The bond does not cover:
- Claims of persons who participated in the construction work
- Damages resulting from delay in the execution of construction work
- Damages for moral injury
- Punitive damages
All contractors must provide a license bond according to the Régie du bâtiment du Québec, with the exception of certain categories of residential building contractor’s licenses. The amount of the bond required by the Régie du bâtiment du Québec is:
- $ 20,000 for specialized contractors.
- $ 40,000 for general contractors.
The ACQ offers the bond for fraud and malfeasance to the contractors accredited to the DGC. Just apply to your regional association by completing an application form. You will also need to provide a copy of your DGC accreditation certificate.
The amount of bail required by the DGC for fraud and malfeasance is $ 20,000. Contact us for all the details.