Labour and material payment bond

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Attention! As part of the Acquisitions Program’s transformation agenda, PSPC is planning to archive and migrate the SACC manual to the CanadaBuys website. The SACC manual will continue to be available on the BuyandSell website to ensure continuity of service during this transition period. At this time, an initial version of the archived version of the SACC has been posted on CanadaBuys. We encourage you to go visit the site and get comfortable with the new format of the SACC at the following:

Archived - Standard Acquisition Clauses and Conditions Manual | CanadaBuys

We appreciate your continued feedback and cooperation during this transition.

Legal text for SACC item

  1. In order to provide funds for labour, services and material, the Contractor must, within _____ calendar days after the date of contract award, provide to the Contracting Authority a duly executed labour and material payment bond form PWGSC-TPSGC 506. The labour and material bond must be _____ percent of the Contract Price and must be accepted as security by one of the bonding companies, in accordance with the Guidance on Source Lists of Companies Licensed to Provide Surety Within Canada.
  2. The Contractor must post a copy of the bond in a plainly visible place where any of the Work is performed.
  3. If Canada does not receive the required bond within the specified period, Canada may terminate the Contract for default pursuant to the default provision of the Contract.
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