Definition : Surety - Licence bond

Contract by which a surety (usually an association of contractors, an insurance company or a financial institution) undertakes to indemnify a customer who has contracted, outside the Guarantee Plan for New Residential Buildings (mandatory), with a construction contractor because of a damage resulting directly from the deposits paid, the non-completion of the work and defects in workmanship and defects discovered in the year following the completion of the work. This security is a requirement under the Building Act for any contractor holding or applying for a licence from the Régie du bâtiment du Québec (RBQ).

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May 3, 2022- The duty of maintenance and conservation of the building that falls to the administrators of a co-ownership involves one day doing business with construction contractors. Whether it is to replace the roof, renovate the entrance hall or repair brick siding and masonry, it is important to be vigilant when awarding such contracts, given their often very high costs. As agents of the syndicate, directors must act with caution, in order to protect the interests of the community of co-owners. This translates into various rules that should be followed, especially when the work is important:  
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