Building Contracts - Tenders - Bonds


The Ontario Court of Appeal recently dealt with Tenders for construction contracts. In this case, the tender documents required the bidders to obtain performance bonds "upon acceptance" of a bid. The Court of Appeal held that the successful bidder did not have to provide a performance bond with its bid, but only after acceptance of its bid.

This decision is a reminder of the difference between the contract formed by the tender process (Contract A) and the contract between the owner and a bidder arising from the tender process (Contract B).

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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