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Archived - Standard Acquisition Clauses and Conditions Manual - E - Financial Security

Version: 06-2023

This page has been archived

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The Standard Acquisition Clauses and Conditions (SACC) Manual is no longer being maintained as of June 2023. Clauses previously labelled as “Active” in the manual are now shown as archived. Contracts issued with SACC Manual clauses remain valid. This is part of Public Services and Procurement Canada’s modernization efforts. Read a news article for more information.

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Financial Security

E0001T

Effective Date

Item Status

Title

2007-11-30CancelledE0001TARCHIVED Security Deposits and/or Surety Bonds

Remarks – Recommended Use of SACC Item

Use the following clause in bid solicitations, in conjunction with clause 
E0004T.  

The contracting officer must insert only the percentage amount in paragraphs 1 
and 2.

Legal text for SACC item

1.     Enclosed with the bid is the requested security consisting of:

       (a)    a security deposit (government guaranteed bonds, bills of 
              exchange, irrevocable standby letters of credit) in the 
              amount of $ _____, being not less than _____ percent of the 
              bid price; or

       (b)    a bid bond in the amount of $ _____, being not less than _____ 
              percent of the bid price.

2.     If the bid is accepted, the Bidder will be required to provide one 
       of the following contract financial securities within _____ calendar 
       days of contract award:

       (a)    a performance bond (form PWGSC-TPSGC 505 attached) in the 
              amount of _____ percent of the contract price; OR

       (b)    a performance bond (form PWGSC-TPSGC 505 attached) and a 
              labour and material payment bond (form PWGSC-TPSGC 506 
              attached), each in the amount of _____ percent of the 
              contract price; OR

       (c)    a labour and material payment bond (form PWGSC-TPSGC 506 
              attached), in the amount of _____ percent of the contract 
              price,  plus the security deposit furnished in accordance 
              with 1.(a) above, both of which Canada will retain; OR

              NOTE:  The above-mentioned bonds are also available 
                     electronically on the following Public Works and 
                     Government Services Canada Website: http://www.pwgsc.gc.ca
                     /acquisitions/text/forms/forms-e.html, and must be 
                     accepted as security by one of the insurance companies 
                     listed in Treasury Board Contracting Policy, Appendix 
                     L, Acceptable Bonding Companies,   http://www.tbs-sct.gc.ca
                     /pubs_pol/dcgpubs/contracting/contractingpol_l_e.asp.

       (d)    a security deposit (government guaranteed bonds, bills of 
              exchange, irrevocable standby letters of credit) to the value 
              of _____ percent of the contract price, plus the security 
              deposit furnished in accordance with 1.(a) above, both of 
              which Canada will retain; OR 

       (e)    a security deposit (government guaranteed bonds, bills of 
              exchange, irrevocable standby letters of credit) to the value 
              of _____ percent of the contract price.

3.     If, for any reason, Canada does not receive, within the specified 
       period, the Contract signed by the Bidder and the requested contract 
       financial security, Canada may, at its discretion, retain the bid 
       security and accept another bid, issue a new bid solicitation, award 
       a contract or reject all the bids.

2002-12-13SupersededE0001TARCHIVED Security Deposits and/or Surety Bonds

2000-12-01SupersededE0001TARCHIVED Security Deposits and/or Surety Bonds

2000-05-12SupersededE0001TARCHIVED Security Deposits and/or Surety Bonds

1998-02-16SupersededE0001TARCHIVED Security Deposits and/or Surety Bonds

1996-10-30SupersededE0001TARCHIVED Security Deposits and/or Surety Bonds

1991-06-01SupersededE0001TARCHIVED Security Deposits and/or Surety Bonds

E0002T

Effective Date

Item Status

Title

1991-06-01CancelledE0002TARCHIVED Security Deposits and/or Surety Bonds

Remarks – Recommended Use of SACC Item

Use the following clause in bid solicitations when contract security will only 
be required after bid evaluations if the risk involved in letting the contract 
to the successful bidder warrants it.  Refer to SPM Directive 2103.

Legal text for SACC item

The cost of providing contract financial security is $ _____ and is 
   excluded from the Bidder's bid price.  It is understood that this cost 
   will be used in evaluating the bid if Canada considers provision of 
   financial security necessary, and should contract security be required, 
   the Bidder shall provide it and the cost of providing such security as 
   stated above will be included in any contract awarded.

E0003T

Effective Date

Item Status

Title

2014-09-25ActiveE0003TSecurity Deposit - Bid and Contract Financial Security Required

Remarks – Recommended Use of SACC Item

Use the following clause in bid solicitations when clause E0004T is used to require bid financial security and a contract financial security is required under the resulting contract clauses.

Legal text for SACC item



Canada will hold the security deposit as security to entry into a contract. If a successful bidder refuses to enter into contract, the amount of the security deposit will be forfeited to Canada or a demand for payment will be made against the letter of credit by Canada. The amount forfeited or payment demand will not exceed the difference between the bid price and the amount of the Contract awarded by Canada for the requirement.
Canada will return all non-forfeited security deposits to unsuccessful bidders after contract award, and to the successful Bidder upon receipt of the required contract financial security. If no contract is awarded, Canada will return all security deposits at the expiration of the bid validity period, including any extension.

2011-05-16SupersededE0003TARCHIVED Security Deposit

2010-01-11SupersededE0003TARCHIVED Security Deposit

2008-05-12SupersededE0003TARCHIVED Security Deposit

1998-02-16SupersededE0003TARCHIVED Security Deposit

1991-06-01SupersededE0003TARCHIVED Security Deposit

E0004T

Effective Date

Item Status

Title

2022-12-01ActiveE0004TBid financial security

Remarks – Recommended Use of SACC Item

Use the following clause in bid solicitations when bid financial security is required.

Use this clause in conjunction with E0008T and E0009T .

Use this clause in conjunction with E0003T , E0008T , E0005C and E0008C when bid financial security is required in the bid solicitation and contract financial security is required under the resulting contract.

Contracting officers must complete paragraphs 3 and 4 before issuing the bid solicitation.

For more information, consult 4.50 , 4.50.1 and 5.55.5 of the Supply Manual .

Legal text for SACC item



Bidders must provide bid financial security consisting of:
            
a security deposit as defined in clause E0008T;  or
a bid bond form PWGSC-TPSGC 504, which must be accepted as security by one of the bonding companies, in accordance with the Guidance on Source Lists of Companies Licensed to provide Surety Within Canada. 


Security deposits in the form of government guaranteed bonds with coupons attached will be accepted only if all coupons that are unmatured, at the time the security deposit is provided, are attached to the bonds. Bidders must provide written instructions concerning the action to be taken with respect to coupons that will mature while the bonds are pledged as security, when such coupons are in excess of the security deposit requirement.
If the financial security is in the form of a bill of exchange or a government guaranteed bond and:
            
the bid price is $250,000 or less, the amount of the security deposit must represent ____ (___) percent of the bid price; or
the bid price exceeds $250,000, the amount of the security deposit must be $_____ plus ____ (___) percent of the amount by which the bid price exceeds $250,000, to a maximum of $_____ .


If the financial security is a bid bond, the amount of the bond must represent ____ (___) percent of the bid price.
Bidders who provide a security deposit as bid financial security must submit their bid under seal (does not apply in Quebec).

2011-05-16SupersededE0004TARCHIVED Bid Financial Security

2010-01-11SupersededE0004TARCHIVED Bid Financial Security

2008-05-12SupersededE0004TARCHIVED Bid Financial Security

2007-11-30SupersededE0004TARCHIVED Financial Security

2002-12-13SupersededE0004TARCHIVED Financial Security

2000-12-01SupersededE0004TARCHIVED Financial Security

2000-05-12SupersededE0004TARCHIVED Financial Security

1999-06-21SupersededE0004TARCHIVED Financial Security

1998-02-16SupersededE0004TARCHIVED Financial Security

1996-10-30SupersededE0004TARCHIVED Financial Security

1991-06-01SupersededE0004TARCHIVED Financial Security

E0005C

Effective Date

Item Status

Title

2011-05-16ActiveE0005CFinancial Security

Remarks – Recommended Use of SACC Item

Use the following clause in contracts when bid financial security was required in the bid solicitation and the successful bidder must provide a security deposit as contract financial security.

Use this clause in conjunction with E0003T , E0004T , E0008T and E0008C .

Legal text for SACC item



The Contractor must provide the Contracting Authority with financial security within _____ calendar days after the date of contract award. The financial security must be in the form of a security deposit as defined in clause E0008C in the amount of $______ for the entire contract period, including any extension.
If, for any reason, Canada does not receive the security deposit in the amount set out above within the specified period, the Contractor will be in default. Canada may, at its discretion, retain the bid financial security and accept another bid, reject all bids or issue a new bid solicitation.
If the security deposit is in the form of government guaranteed bonds with coupons, all coupons that are unmatured at the time the security deposit is provided must be attached to the bonds. The Contractor must provide written instructions concerning the action to be taken with respect to coupons that will mature
while the bonds are pledged as security, when such coupons are in excess of the security deposit requirement.
If the security deposit is in the form of a bill of exchange, Canada will deposit the bill of exchange in an open account in the Consolidated Revenue Fund. Bills of exchange that are deposited to the credit of the Consolidated Revenue Fund will bear simple interest, calculated on the basis of the rates which are in effect during the period the deposit is held.
 

These rates are published monthly by the Department of Finance and are set to be equal to the average yield on 90-day Treasury Bills, less 1/8 of 1 percent. Interest will be paid annually or, when the security deposit is returned to the Contractor, if earlier. The Contractor may, however, request Canada to hold and not cash the bill of exchange, in which case no interest will become payable.
Canada may convert the security deposit to the use of Canada if any circumstance exists which would entitle Canada to terminate the Contract for default, but any such conversion will not constitute termination of the Contract.
When Canada so converts the security deposit:

the proceeds will be used by Canada to complete the Work according to the conditions of the Contract, to the nearest extent that it is feasible to do so and any balance left will be returned to the Contractor on completion of the warranty period; and
if Canada enters into a contract to have the Work completed, the Contractor will:

be considered to have irrevocably abandoned the Work; and
remain liable for the excess cost of completing the Work if the amount of the security deposit is not sufficient for such purpose. "Excess cost" means any amount over and above the amount of the Contract Price remaining unpaid together with the amount of the security deposit.




If Canada does not convert the security deposit to the use of Canada before completion of the contract period, Canada will return the security deposit to the Contractor within a reasonable time after such date.
If Canada converts the security deposit for reasons other than bankruptcy, the financial security must be reestablished to the level of the amount stated above so that this amount is continued and available until completion of the contract period.

2008-05-12SupersededE0005CARCHIVED Financial Security

2000-12-01SupersededE0005CARCHIVED Security Deposit

1999-06-21SupersededE0005CARCHIVED Security Deposit

1998-02-16SupersededE0005CARCHIVED Security Deposit

1991-06-01SupersededE0005CARCHIVED Security Deposit

E0006D

Effective Date

Item Status

Title

1992-08-01CancelledE0006DARCHIVED Financial Security

Remarks – Recommended Use of SACC Item

No remarks.

Legal text for SACC item

The Contractor shall provide Financial Security as outlined at Annex "___" 
attached to and forming part of this Contract. List of companies whose 
guarantee bonds may be accepted by the Government of Canada and samples of 
"Performance Bond" and "Labour and Material Payment Bond" incorporated in 
the Request for Proposal (RFP) form part of this Contract.

1992-01-31SupersededE0006DARCHIVED Financial Security

E0007C

Effective Date

Item Status

Title

2022-12-01ActiveE0007CContract financial security

Remarks – Recommended Use of SACC Item

Use the following clause in contracts when the contractor is required to provide contract financial security after contract award.

Use this clause in conjunction with E0008C .

Contracting officers must insert the amount of percentage required under paragraph 1.

Legal text for SACC item



The Contractor must provide one of the following contract financial securities within _____ calendar days after the date of contract award:
            
a performance bond form PWGSC-TPSGC 505 in the amount of _____ percent of the Contract Price; or
a performance bond form PWGSC-TPSGC 505 and a labour and material payment bond form PWGSC-TPSGC 506, each in the amount of _____ percent of the Contract Price; or
a labour and material payment bond form PWGSC-TPSGC 506 in the amount of _____ percent of the Contract Price; or
a security deposit as defined in clause E0008C in the amount of _____ percent of the Contract Price.

Any bond must be accepted as security by one of the bonding companies, in accordance with the Guidance on Source Lists of Companies Licensed to Provide Surety Within Canada. 



Security deposits in the form of government guaranteed bonds with coupons attached will be accepted only if all coupons that are unmatured, at the time the security deposit is provided, are attached to the bonds. The Contractor must provide written instructions concerning the action to be taken with respect to coupons that will mature while the bonds are pledged as security, when such coupons are in excess of the security deposit requirement.
If Canada does not receive the required financial security within the specified period, Canada may terminate the Contract for default pursuant to the Contract default provision.

2011-05-16SupersededE0007CARCHIVED Contract Financial Security

2010-01-11SupersededE0007CARCHIVED Contract Financial Security

2008-05-12SupersededE0007CARCHIVED Contract Financial Security

E0007T

Effective Date

Item Status

Title

2007-11-30SupersededE0007TARCHIVED Contract Financial Security

Remarks – Recommended Use of SACC Item

Use the following clause in bid solicitations when contract financial security 
is required, and in conjunction with clauses E0005C and E0008D.

Legal text for SACC item

1.     If the bid is accepted, the Bidder will be required to provide one 
       of the following contract financial securities within _____ calendar 
       days of contract award:

       (a)    a performance bond (form PWGSC-TPSGC 505 attached) in the 
              amount of _____ percent of the contract price; OR

       (b)    a performance bond (form PWGSC-TPSGC 505 attached) and a 
              labour and material payment bond (form PWGSC-TPSGC 506 
              attached), each in the amount of _____ percent of the 
              contract price; OR

       (c)    a labour and material payment bond (form PWGSC-TPSGC 506 
              attached) in the amount of _____ percent of the contract 
              price; OR

              NOTE:  The above-mentioned bonds are also available 
                     electronically on the following Public Works and 
                     Government Services Canada Website address: http://www.pwgsc.gc.ca
                     /acquisitions/text/forms/forms-e.html and must be 
                     accepted as security by one of the insurance companies 
                     listed in Treasury Board Contracting Policy, Appendix 
                     L, Acceptable Bonding Companies http://www.tbs-sct.gc.ca
                     /pubs_pol/dcgpubs/contracting/contractingpol_l_e.asp.

       (d)    a security deposit (government guaranteed bonds, bills of 
              exchange, irrevocable standby letters of credit) to the value 
              of _____ percent of the contract price. 

2.     If, for any reason, Canada does not receive, within the specified 
       period, the Contract signed by the Bidder and the requested contract 
       financial security, Canada may, as its discretion, retain the bid 
       security and accept another offer, issue a new bid solicitation, 
       award a contract or reject all the bids.

3.     Security deposits in the form of coupon bonds must be accompanied by 
       all coupons that are unmatured at the time such bonds are delivered 
       to Canada.  Canada may, from time to time detach matured coupons and 
       send them to the Bidder at the address noted on the bid, unless 
       specified otherwise by the Contractor.

2003-05-30SupersededE0007TARCHIVED Contract Financial Security

2002-12-13SupersededE0007TARCHIVED Contract Financial Security

2000-12-01SupersededE0007TARCHIVED Contract Financial Security

2000-05-12SupersededE0007TARCHIVED Contract Financial Security

1999-06-21SupersededE0007TARCHIVED Contract Financial Security

1998-02-16SupersededE0007TARCHIVED Contract Financial Security

1996-10-30SupersededE0007TARCHIVED Contract Financial Security

E0008C

Effective Date

Item Status

Title

2018-06-21ActiveE0008CSecurity deposit definition: Contract

Remarks – Recommended Use of SACC Item

Use the following clause in contracts when contract financial security is required.

Use this clause in conjunction with E0005C or E0007C .

Legal text for SACC item



"security deposit" means

a bill of exchange that is payable to the Receiver General for Canada and certified by an approved financial institution or drawn by an approved financial institution on itself; or
a government guaranteed bond; or
an irrevocable standby letter of credit, or
such other security as may be considered appropriate by the Contracting Authority and approved by Treasury Board;


"approved financial institution" means

any corporation or institution that is a member of the Canadian Payments Association (Payments Canada);
a corporation that accepts deposits that are insured by the Canada Deposit Insurance Corporation or the Régie de l'assurance-dépôts du Québec to the maximum permitted by law;
a credit union as defined in paragraph 137(6) of the Income Tax Act;
a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by a Canadian province or territory; or
the Canada Post Corporation.


"government guaranteed bond" means a bond of the Government of Canada or a bond unconditionally guaranteed as to principal and interest by the Government of Canada that is:

payable to bearer;
accompanied by a duly executed instrument of transfer of the bond to the Receiver General for Canada in accordance with the Domestic Bonds of Canada Regulations;
registered in the name of the Receiver General for Canada.


"irrevocable standby letter of credit"

means any arrangement, however named or described, whereby a financial institution (the "Issuer"), acting at the request and on the instructions of a customer (the "Applicant"), or on its behalf,

will make a payment to or to the order of Canada, as the beneficiary;
will accept and pay bills of exchange drawn by Canada;
authorizes another financial institution to effect such payment, or accept and pay such bills of exchange; or
authorizes another financial institution to negotiate, against written demand(s) for payment, provided that the conditions of the letter of credit are complied with.

must state the face amount which may be drawn against it;
must state its expiry date;
must provide for sight payment to the Receiver General for Canada by way of the financial institution's draft
against presentation of a written demand for payment signed by the authorized departmental representative identified in the letter of credit by his or her office;
must provide that more than one written demand for payment may be presented subject to the sum of those demands not exceeding the face amount of the letter of credit;
must provide that it is subject to the International Chamber of Commerce (ICC) Uniform Customs and Practice (UCP) for Documentary Credits, 2007 Revision, ICC Publication No. 600. Pursuant to the ICC UCP, a credit is irrevocable even if there is
no indication to that effect; and
must be issued (Issuer) or confirmed (Confirmer), in either official language, by a financial institution that is a
member of the Canadian Payments Association (Payments Canada) and is on the letterhead of the Issuer or Confirmer. The format is left to the
discretion of the Issuer or Confirmer.

2014-09-25SupersededE0008CARCHIVED Security Deposit Definition - Contract

2012-07-16SupersededE0008CARCHIVED Security Deposit Definition

2011-05-16SupersededE0008CARCHIVED Security Deposit Definition

2008-05-12SupersededE0008CARCHIVED Security Deposit Definition

E0008D

Effective Date

Item Status

Title

1999-06-21SupersededE0008DARCHIVED Contract Financial Secutity

Remarks – Recommended Use of SACC Item

Use the following clause in conjunction with E0004T, E0005C and E0007T.

Legal text for SACC item

In this clause,

"security deposit" means

(a)    a bill of exchange

       (1)    that is payable to the Receiver General for Canada, and

       (2)    that is certified by an approved financial institution or 
              drawn by an approved financial institution on itself; or

(b)    a Government guaranteed bond; or

(c)    an irrevocable standby letter of credit, or

(d)    such other security as may be deemed appropriate by the Contracting 
       Authority (Department of Public Works and Government Services) and 
       approved by Treasury Board;

"approved financial institution" means

(a)    any corporation or institution that is a member of the Canadian 
       Payments Association;

(b)    a corporation that accepts deposits that are insured by the Canada 
       Deposit Insurance Corporation or the "Régie de l'assurance-dépôts du 
       Québec" to the maximum permitted by law;

(c)    a credit union as defined in the Income Tax Act; or

(d)    a corporation that accepts deposits from the public, if repayment of 
       the deposits is guaranteed by Canada in right of a province.

"Government guaranteed bond" means a bond of the Government of Canada or a 
bond unconditionally guaranteed as to principal and interest by the 
Government of Canada that is:

(a)    payable to bearer; or

(b)    accompanied by a duly executed instrument of transfer of the bond to 
       the Receiver General for Canada in accordance with the Domestic 
       Bonds of Canada Regulations; or

(c)    registered in the name of the Receiver General for Canada.
 
"irrevocable standby letter of credit" means any arrangement, however named 
or described, whereby a financial institution (the "Issuer"), acting at the 
request and on the instructions of a customer (the "Applicant"), or on its 
own behalf, is to make a payment to or to the order of Canada, as the 
beneficiary, or is to accept and pay bills of exchange drawn by Canada, or 
authorizes another financial institution to effect such payment, or accept 
and pay such bills of exchange, or authorizes another financial institution 
to negotiate, against written demand(s) for payment provided that the terms 
and conditions of the letter of credit are complied with.

The letter of credit shall:

(a)    state the face amount which may be drawn against it;

(b)    state its expiry date;

(c)    provide for sight payment to the Receiver General for Canada by way 
       of the financial institution's draft against presentation of a 
       written demand for payment signed by the authorized departmental 
       representative identified in the letter of credit by his\her office;

(d)    provide that more than one written demand for payment may be 
       presented subject to the sum of those demands not exceeding the face 
       amount of the letter of credit;

(e)    provide that it is subject to the International Chamber of Commerce 
       (ICC) Uniform Customs and Practice for Documentary Credits, 1993 
       Revision, ICC Publication No. 500;

(f)    clearly specify that it is irrevocable or deemed to be irrevocable 
       pursuant to article 6c) of the ICC Uniform Customs and Practice for 
       Documentary Credits, 1993 Revision, ICC Publication No. 500; and

(g)    be issued or confirmed, in either official language, by a financial 
       institution which is a member of the Canadian Payments Association 
       and is on the letterhead of the Issuer or Confirmer. The format is 
       left to the discretion of the Issuer or Confirmer.

"completion of warranty period" means the later of the date upon which the 
warranty period expires by the passage of time or the date upon which the 
obligation of the Contractor related to the warranty provisions of the 
Contract have been fulfilled.

E0008T

Effective Date

Item Status

Title

2018-06-21ActiveE0008TSecurity deposit definition: Bid

Remarks – Recommended Use of SACC Item

Use the following clause in bid solicitations when bid financial security is required.

Use this clause in conjunction with E0004T .

Legal text for SACC item



"security deposit" means

a bill of exchange that is payable to the Receiver General for Canada and certified by an approved financial institution or drawn by an approved financial institution on itself; or
a government guaranteed bond; or
an irrevocable standby letter of credit, or
such other security as may be considered appropriate by the Contracting Authority and approved by Treasury Board;


"approved financial institution" means 

any corporation or institution that is a member of the Canadian Payments Association (Payments Canada);
a corporation that accepts deposits that are insured by the Canada Deposit Insurance Corporation or the "Régie de
l'assurance-dépôts du Québec" to the maximum permitted by law;
a credit union as defined in paragraph 137(6) of the Income Tax Act;
a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by a Canadian province or territory; or
the Canada Post Corporation.


"government guaranteed bond" means a bond of the Government of Canada or a bond unconditionally guaranteed as to principal and interest by the Government of Canada that is:

payable to bearer;
accompanied by a duly executed instrument of transfer of the bond to the Receiver General for Canada in accordance with the Domestic Bonds of Canada Regulations;
registered in the name of the Receiver General for Canada.


"irrevocable standby letter of credit"

means any arrangement, however named or described, whereby a financial institution (the "Issuer"), acting at the request and on the instructions of a customer (the "Applicant"), or on its behalf,

will make a payment to or to the order of Canada, as the beneficiary;
will accept and pay bills of exchange drawn by Canada;
authorizes another financial institution to effect such payment, or accept and pay such bills of exchange; or
authorizes another financial institution to negotiate, against written demand(s) for payment, provided that the conditions of the letter of credit are complied with.


must state the face amount which may be drawn against it;
must state its expiry date;
must provide for sight payment to the Receiver General for Canada by way of the financial institution's draft against presentation of a written demand for payment signed by the authorized departmental representative identified in the letter of credit by his or her office;
must provide that more than one written demand for payment may be presented subject to the sum of those demands not exceeding the face amount of the letter of credit;
must provide that it is subject to the International Chamber of Commerce (ICC) Uniform Customs and Practice (UCP) for Documentary Credits, 2007 Revision, ICC Publication No. 600. Pursuant to the ICC UCP, a credit is irrevocable even if there is no indication to that effect; and
must be issued (Issuer) or confirmed (Confirmer), in either official language, by a financial institution that is a member of the Canadian Payments Association (Payments Canada) and is on the letterhead of the Issuer or Confirmer. The format is left to the discretion of the Issuer or Confirmer.

2014-09-25SupersededE0008TARCHIVED Security Deposit Definition - Bid

2012-07-16SupersededE0008TARCHIVED Security Deposit Definition

2011-05-16SupersededE0008TARCHIVED Security Deposit Definition

2010-01-11SupersededE0008TARCHIVED Security Deposit Definition

2008-05-12SupersededE0008TARCHIVED Security Deposit Definition

E0009T

Effective Date

Item Status

Title

2015-07-03ActiveE0009TSecurity Deposit - Bid Financial Security

Remarks – Recommended Use of SACC Item

Use the following clause in bid solicitations when clause E0004T is used to require bid financial security, but no contract financial security is required in the resulting contract clauses.

See clause E0003T when E0004T is used and a contract financial security is also required.

Use this clause in conjunction with E0004T .

For more information, consult 7.50 and Annex 5.2 of the Supply Manual .

Legal text for SACC item



Canada will hold the security deposit as security to enter into contract. If a successful bidder refuses to enter into contract, the amount of the security deposit will be forfeited to Canada or a demand for payment will be made against the letter of credit by Canada. The amount forfeited or payment demand will not exceed the difference between the bid price and the amount of the Contract awarded by Canada for the requirement.
Canada will return all non-forfeited security deposits to bidders after contract award or, if no contract is awarded, at the expiration of the bid validity period, including any extension.

2014-09-25SupersededE0009TARCHIVED Security Deposit - Bid Financial Security

2010-01-11SupersededE0009TARCHIVED Security Deposit

2008-05-12SupersededE0009TARCHIVED Security Deposit

E5000C

Effective Date

Item Status

Title

2022-12-01ActiveE5000CPerformance bonds

Remarks – Recommended Use of SACC Item

Use the following clause in contracts when financial security in the form of a performance bond is required.

Contracting officers must complete the first paragraph.

Legal text for SACC item


In order to ensure that funds will be available to complete the Work in accordance with the conditions of the Contract, the Contractor must, within _____ calendar days after the date of contract award, provide to the Contracting Authority a duly executed performance bond form PWGSC-TPSGC 505. The performance bond must be ______ percent of the Contract Price and must be accepted as security by one of the bonding companies, in accordance with the Guidance on Source Lists of Companies Licensed to Provide Surety Within Canada.
If Canada does not receive the performance bond within the specified period, Canada may terminate the Contract for default pursuant to the default provision of the Contract.

2010-01-11SupersededE5000CARCHIVED Performance Bonds

2008-05-12SupersededE5000CARCHIVED Performance Bonds

1991-06-01SupersededE5000CARCHIVED Performance Bonds

E8000C

Effective Date

Item Status

Title

2022-12-01ActiveE8000CLabour and material payment bond

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Use the following clause in contracts when a contract financial security in the form of labour and material payment bond is required.

Contracting officers must complete paragraph 1.

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In order to provide funds for labour, services and material, the Contractor must, within _____ calendar days after the date of contract award, provide to the Contracting Authority a duly executed labour and material payment bond form PWGSC-TPSGC 506. The labour and material bond must be _____ percent of the Contract Price and must be accepted as security by one of the bonding companies, in accordance with the Guidance on Source Lists of Companies Licensed to Provide Surety Within Canada.
The Contractor must post a copy of the bond in a plainly visible place where any of the Work is performed.
If Canada does not receive the required bond within the specified period, Canada may terminate the Contract for default pursuant to the default provision of the Contract.

2015-07-03SupersededE8000CARCHIVED Labour and Material Payment Bond

2010-08-16SupersededE8000CARCHIVED Labour and Material Payment Bond

2010-01-11SupersededE8000CARCHIVED Labour and Material Payment Bond

2008-05-12SupersededE8000CARCHIVED Labour and Material Payment Bond

1991-06-01SupersededE8000CARCHIVED Labour and Material Payment Bond

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Date modified:: 2025-03-05

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Archived - Standard Acquisition Clauses and Conditions Manual - E - Financial Security

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Financial Security

E0001T

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E0002T

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E0003T

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E0004T

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E0005C

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E0006D

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E0007C

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E0007T

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E0008C

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E0008D

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E0008T

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E0009T

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E5000C

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E8000C

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