Thank you, Mr. Chair. The bond would cover labour and materials, those types of things. Again, the contractor would purchase the bond, the bonding company would do its due diligence on the contractor to ensure that they have the ability to lead the work, the ability to pay the subcontractors, the ability to deliver the project, and they’re in a sense guaranteeing to the government that the work will be performed even in the event that the
contractor fails to deliver, the bonding company is responsible to fund the completion of the work. So in those cases we would look for a bond that covers the value of the work.
In cases where we don’t have a bond and we want cash security or we want to retain a holdback, we would want to ensure that we have enough funding in place in securities, through either cash or a letter of credit, that would allow us to ensure that the contract is completed and that the subcontractors are paid. Thank you, Mr. Chair.