Price & cost

What will the bond cost you?

A surety bond premium is quoted per $1,000 of contract price, on a declining scale — about $25/$1,000 on the first $100k, dropping as the contract grows. For most jobs that's 0.5%–3% of the contract value, and it has to live in your bid price.

Enter your contract value to estimate the premium for a combined performance and labour-&-material bond.

01Your contractperf + L&M
Use the full contract price including tax. The estimate assumes a combined 50% performance and 50% labour-&-material bond — the most common requirement.
Awaiting a value
Enter your contract value to estimate the bond premium you should build into your bid price.

Last reviewed 2026-06-21

How surety pricing works

A bond is not insurance for you — it is a guarantee to the government buyer that the work will be finished and your subcontractors paid. You pay a one-time premium to a surety, which underwrites your company much like a lender. Because the premium scales with the contract size but the surety's risk per dollar falls on larger, well-run jobs, the rate per $1,000 declines in tiers as the contract value rises.

A worked example

On an $850,000 contract, the first $100,000 is rated at about $25 per $1,000 ($2,500), the portion to $500,000 at about $15 per $1,000 ($6,000), and the remaining $350,000 at about $10 per $1,000 ($3,500) — roughly $12,000, or about 1.4% of the contract. The calculator above walks these tiers for any value and shows a range, because your real rate depends on underwriting.

The CCDC bond forms

Canadian construction bonds use standard CCDC forms: CCDC 220 bid bond, CCDC 221 performance bond, and CCDC 222 labour-and-material payment bond. Most government solicitations require a performance bond and a labour-&-material bond, each typically at 50% of the contract value. Read the solicitation: it states the bonding amounts and forms you must provide, and missing them is a mandatory-requirement failure regardless of your price.

Get a firm number before you bid

This tool is a planning estimate. Your actual premium — and whether you can be bonded at all — depends on your surety's assessment of your financials and history. Build a relationship with a licensed surety broker early; a firm quote before bid close is the only number you should price against. This is guidance, not financial or legal advice.

Common questions

How much does a performance bond cost in Canada?

Surety premiums are quoted per $1,000 of contract price on a declining scale — roughly $25 per $1,000 on the first $100,000, falling to about $7.50 per $1,000 above $2.5 million. For most contracts the all-in cost lands between 0.5% and 3% of the contract value.

What is the difference between CCDC 220, 221, and 222?

CCDC 220 is the bid bond (guarantees you will enter the contract if selected), CCDC 221 is the performance bond (guarantees completion), and CCDC 222 is the labour-and-material payment bond (guarantees your subcontractors and suppliers get paid). Government contracts usually require 221 and 222 together.

Who pays for the bond?

The contractor pays the surety premium and builds it into the bid price. It is a real cost of doing the work, not a refundable deposit, so it has to be priced in or it comes out of your margin.

What determines my actual premium?

Your bonding rate is set by the surety's underwriting: your financial statements, working capital, bonding history, and the size and risk of the job. A strong track record lowers your rate; a new or thinly-capitalized firm pays more, if it can be bonded at all.

Is this bid bond calculator free?

Yes, free and no signup. It gives a representative estimate to help you price a bid. Always confirm the real figure with a licensed surety broker before submitting.

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