Published February 1, 1995. This appendix is a guideline for the use of surety bonds for government.
The Claimant's Payment Bond form contained in this Appendix is a new security option that may be used in construction contracts effective January 1, 1994. When one or more claims are made against the prime contractor, the posting of a Claimant's Payment Bond by the prime contractor will permit regular payments by the Crown under the contract while the disputes are being settled between the various parties. The use of the bond in construction contracts provides a remedy to contractors whose cash flow would otherwise suffer as a result of claims against them.
The Labour and Material Payment Bond contained in this Appendix and the current versions of the Bid Bond and the Performance Bond are all under revision, and should continue to be used until further notice.