Consent of surety

A consent of surety (also called an agreement to bond) is a signed statement from a licensed surety company promising to issue the required bonds — typically the performance bond and labour and material payment bond — if your company wins the contract.

What it actually promises

The consent commits nothing if you lose; it only takes effect if you are awarded the contract. It tells the buyer: this bidder has an established bonding line and the surety has already reviewed the job and will issue the bonds at award.

Why buyers require it

A bid bond alone caps the buyer's recovery at the bond amount (often 10% of the bid). The consent of surety guarantees the follow-through — the 50% performance security — so the buyer isn't left re-tendering a failed contract. Many Canadian tenders list "bid bond and consent of surety" as one mandatory package.

Common questions

How do I get one?

Through a surety broker. First-time bidders need to establish a bonding line, which involves financial review and can take days to weeks — start before the tender closes, not the closing afternoon.

Does it cost anything?

The consent itself is usually issued at no charge once a bonding line exists; premiums apply to the bonds actually issued at award.

What if I can't get one?

If the tender makes it mandatory, your bid will be declared non-compliant without it. Some buyers accept alternatives (certified cheque or letter of guarantee as bid security) only where the tender says so.

Related definitions

Bid security · Bid bond vs performance bond · Sole-source justification