Overview
Surety bonds are a compliance tool which protect consumers by ensuring that licensed gas and electrical contractors adhere to their legal responsibilities to correct non-compliant work. Currently, we require a $10,000 surety bond as a condition of both gas and electrical contractor licences. These bonds provide a source of funds to correct non-compliances in the event that the licence holder (contractor) cannot or will not remediate the non-compliance(s).
The surety bond process is part of the application process for an electrical contractor's license and a gas contractor's license.
Calling a bond
If a provincial safety manager calls a bond, the licence is suspended. Once the licence is suspended, the contractor is no longer authorized to obtain permits or perform regulated work in the province until a new bond is submitted.
A safety manager may choose to call a bond under the following circumstances:
- in the case of non-compliances which also pose a safety hazard;
- where the contractor refuses to rectify the deficiency after adequate notice;
- where the contractor cannot be located or is believed to be out of business;
- where the contractor is legally unable to perform the work himself or herself, for example due to expiry, suspension or revocation of any necessary permission; or
- in some circumstances where the contractor is physically unable to do the work, such as due to accident or illness.