MISSISSAUGA, ONT. — The Surety Association of Canada (SAC) has issued a white paper outlining the role of digital bonds including the requirement for digital bonds to meet three threshold criteria.
The document, titled Digital Bonds the Way of the Future — and the Present, cautions users to be wary of commonly used substitutes for digital bonds such as scanned images which do not meet cornerstone criteria.
“Over the past number of months, SAC has been inundated with inquiries from both owners and contractors about how to obtain a digital bond,” stated Steven Ness, president of the association, in an Oct. 6 release. “And although we have stated our recommendation previously and provide comprehensive information on our website regarding e-bonding and digital bonds, we felt it necessary to create this white paper to provide a printable resource for various stakeholder groups.”
The three threshold criteria identified by SAC are:
Integrity of content. The assurances that the document received is the true document executed and the content has not been changed or altered.
Secure access. Restricting access to the document to those authorized to view and/or download it.
Verifiability/enforceability. Assurances that the document was duly executed by the parties identified and that it is enforceable in law.
The majority of the surety industry’s premium revenue is derived from construction contract bonds. The association also represents the interests of organizations that focus on non-contract or commercial surety.
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