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Public Services and Procurement Canada

Performance Bonds

Legal text for SACC item

In order to ensure that funds will be available to complete the Work in accordance with the conditions of the Contract, the Contractor must, within _____ calendar days after the date of contract award, provide to the Contracting Authority a duly executed performance bond form PWGSC-TPSGC 505. The performance bond must be ______ percent of the Contract Price and must be accepted as security by one of the bonding companies listed in Treasury Board Contracting Policy, Appendix L, Acceptable Bonding Companies.

If Canada does not receive the performance bond within the specified period, Canada may terminate the Contract for default pursuant to the default provision of the Contract.