What every business owner in construction field needs to know
If you intend to ply your trade in the country of Canada, you will first need to meet a few prerequisites. Unfortunately, some of these requirements will be a little difficult to fulfill. This is definitely the case when it comes to obtaining a contractor’s license. Unfortunately, it is not possible to simply go online, fill out a form and obtain your license. Instead, you will first need to acquire a license bond. Without the bond, you will not be able to obtain your license and you will be unable to work in the country. You will learn all about this bond below.
How It Works
Many contractors will claim that the contractor license bond is simply another unnecessary hurdle. This couldn’t be further from the truth. In fact, the Canadian government was incredibly wise to make the bond a requirement. And, believe it or not, this prerequisite actually helps your business. By making the bond a necessity, the government has made it slightly more difficult for companies to obtain their license and serve the Canadian public. More specifically, this requirement actually prevents untrustworthy companies from getting a license.
In return, this protects the consumer, since they know to stay away from non-licensed companies. And it also helps your business. When bidding on a new project, you will have less competition and will not have to worry about being undercut by a company that will be unable to finish the job anyway.
Why Is It Required?
Now, you should understand precisely why the bond is required. Some of this has been explained above, but there is a basic concept at play. The Canadian government utilizes the bond as a way to protect the public. When your company obtains the license bond, you are agreeing that you will obey each and every regulation set for construction contractors. At the same time, the bond gives the government an easy way to punish contractors, which have broken these rules. And again, this goes a long way towards protecting the public.
By knowing their license and the associated bond could be stripped away at any point, contractors are given more encouragement to strive for betterment.
How To Apply
While surety bonds can seem fairly complex to many, getting the bonds you need isn’t all that difficult. In fact, it is possible to apply for your license bond over the Internet. Before doing so, it is pertinent to know the exact amount needed. Be sure to check with your specific province, since the requirements tend to change from location to location. Once you’ve obtained this information, you will be able to apply within a matter of minutes.