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Sureties in the Construction Sector

Surety and Performance Bond Construction Lawyers in Alberta

An increasing number of construction projects are beginning to require contractors to have performance security in the form of a surety bond for labour, materials, performance, or all three. Disputes over surety bonds raise complex and technical legal questions that require the assistance of lawyers with significant knowledge of the construction sector and experience representing clients in that sector.

At HMC Lawyers, we have advised and represented construction industry clients for decades, and have learned that forward-thinking, proactive advice can help parties to projects avoid risk, delays and costly business losses.  We provide construction clients, including contractors, developers, and owners with insightful information and strategic advice regarding surety and performance bonds.

Surety and Performance Bonds in Alberta

When a party hires a contractor, they may want some form of security that the contractor will meet its obligations. A surety bond is signed between the contractor and a third party, with the latter guaranteeing that the contractor will fulfil the terms of the contract. If they fail to do so, the surety will pay out to the second party that hired the contractor. Surety bonds are financial instruments, with various conditions attached to them that differ from contract to contract. 

The advantage of a surety bond is that it provides a significant security (often up to 50%) against the value of the contract, and unlike an insurance policy with a deductible amount, pays out in full upon default. Surety bonds help owners and developers ensure that if a contractor defaults or otherwise cannot finish their work, there will be cash on hand to complete the project.

Assisting Parties with Prosecuting or Defending a Surety Bond Claim

If a contractor is in default, the surety may pay out a sum necessary to complete the project, or the total bond amount, whichever is lower. They may also take alternative steps to complete or arrange for completion of the project. Negotiating and resolving these matters requires careful consideration of the best possible outcomes for all parties, and their ultimate financial and business needs.

The laws and regulations surrounding surety bonds in the construction industry are very complex. In many instances, it may not be entirely clear what constitutes a default under a construction contract, and therefore there may be a dispute over whether a surety bond is payable. If you are unsure whether a contract is in default, seeking knowledgeable legal advice from a lawyer with significant experience in this area is the best way to ascertain how to proceed.

At HMC Lawyers, we can help you navigate the challenging and technical world of surety bonds, and represent you in any related matter. We understand the industry and can make sure your legal and financial interests are protected.  

Experienced Construction Lawyers for Surety and Performance Bond Advice

At HMC Lawyers, we have decades of experience handling construction matters, and have worked closely with clients in all parts of the industry. We act for parties pursuing a claim under a surety bond, as well as for those defending claims against surety bonds.

To discuss a surety bond matter with a member of our Construction Team, contact us online or call 1-800-480-3534 to make an appointment.  We represent clients in the construction sector in Calgary, throughout Alberta, and across Western Canada.

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Contact HMC Lawyers for Exceptional Legal Guidance

At HMC Lawyers, we offer strategic legal advice. Our breadth of practice experience allows us to promptly handle almost every litigation-related legal issue that may arise, and anticipate potential roadblocks that may delay its resolution. To make an appointment with a member of our team, contact us online or call 403-269-7220

For articling and/or summer student inquiries please contact either Kristen Hagg or Praveen Thind by calling 403.269.7220 or emailing them directly at

HMC Lawyers LLP
#1000 903 8th Ave SW
Calgary, AB
T2P 0P7

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