Supply Bond

Please click on our  Standard Application to apply for a Supply Bond.

What are Supply Bonds?

Supply bonds are a unique type of surety bond that guarantee a supplier will provide the supplies/products/materials required in the contract. True supply only contracts are normally considered “off the shelf” type of items that don’t require customization or fabrication after manufactured. However,  supply contracts can include fabrication requirements as part of the supplied end product. This can range from pencils to structural steel, school buses, pipe, computers,  etc.

• • Bid bonds might be required if bids are to federal, state or local governments or a large private supply contract where it’s critical that the product be supplied.
• • Performance bonds are guaranteeing that the supplier will perform the contract according to its terms and conditions and at the price quoted.
• • Payment bonds are in place to make sure that the supplier will pay all bills on the project.

Supply bonds are usually easier to obtain than the standard construction contract bonds and are normally less expensive, but rates vary widely based on the contract, size of project and the supplier’s financial status.