Introduction:

A labour and material surety bond (“L&M Bond”) is a type of surety bond that guarantees that the bonded contractor will pay all claimants for goods or services supplied for the bonded project. Claimants under L&M Bonds are typically suppliers or sub-contractors that contract with the bonded contractor (the Principal) to supply goods or provide services for the bonded job. However, under some L&M Bonds, “lower tier” suppliers or sub-sub-contractors are not protected.

Key Takeaways

Our Restructuring & Insolvency Team reflects on the year, the industry trends and significant matters of 2022. The Team also looks forward as to what the next 12 months may have in store.

[This paper originally presented at the Manitoba Bar Association Mid-Winter Conference, January, 2003. It was updated and revised for the 2011 Pitblado Lectures and again updated in June, 2022.]

As the COVID scourge continues its march across the lives and livelihoods of Canadian individuals and businesses, the federal government has broken the glass and deployed into the economy a historically unprecedented amount of emergency funding in an effort to provide a financial bridge through the crisis to affected enterprises.