The purpose of this study was to assess the impact of construction surety bonds on the overall economy across British Columbia. CANCEA reviewed more than 150,000 bonded projects completed over the last 20 years by more than 10,000 construction firms in order to examine the economic ripple effect of more than 3,000 contractor defaults and analyze the impact that surety protection. The findings confirm the value proposition of public sector bonding to taxpayers by way of strengthening the broader economy and bringing stability and certainty to the public construction process.
The study demonstrates that the size and scope of the economic benefits generated are largely dependent upon the extent to which bonds are used to protect construction risk on public infrastructure. The optimum benefits are realized when 100% of public work is protected by performance and payment bonds.
Download report: The-economic-value-of-surety-in-British-Columbia (1)
The report is available for download at the Surety Association of Canada website.