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MISSISSAUGA, ONT. — The Surety Association of Canada (SAC) has issued a statement criticizing the government of Newfoundland and Labrador’s recent decision to change its treatment of bid bonds.

Bid bonds serve as a financial guarantee from vendors when bidding on projects, ensuring that the bidder remains committed to their bid and provides the required project security if selected, explained a release.

The policy change from the Department of Transportation and Infrastructure was introduced as part of  newly announced procurement strategies designed to support local suppliers and promote sustainability.

The SAC said it believes that the new policy, announced Feb. 5, is misguided and was founded on lack of understanding of bid bonds. The new strategy proposes a reduction and potential elimination of bid bonds.

“The assertions regarding bid bonds in the government’s statement are not only misleading and inaccurate, but, in some cases, patently false,” said SAC president Steven Ness in a statement. “It’s alarming that such inaccuracies and misguided assumptions would lay the groundwork for public policy decisions.”

SAC is urging the government to reconsider the policy direction.

“Our goal is to work with the government to ensure that policies enacted are based on factual information and truly benefit taxpayers and local enterprises,” Ness said. “We are requesting an opportunity to explain the surety products and processes through educational presentations, highlighting their processes and advantages.”