SUPPLY BOND
Performance, Bid, Supply & Remodel Bonds
SUPPLY BOND OVERVIEW:
A Supply Bond is a type of contract bond that guarantees the supplier will furnish supplies or materials as contracted. Should the supplier default, the surety will underwrite the purchaser of the supplies against any loss. This bond is required by the project owner or state or federal law to secure public construction projects.
Submissions under $450,000.00: One Page Application
2% rate or higher based on credit
1 page application
Please include contract and bond forms
Please include personal financial statements
2 day turnaround
Submissions over $450,000.00
Rates start at 1% to 3% based on credit, experience, etc.
1 week turnaround on new submissions
Document Downloads
Application: Call underwriter for appropriate application at 1-818-715-7133
Supply Bond FAQs
Do you want to know more about supply bonds? In the section below, we answer some of the most frequently asked questions about these contract surety bonds to ensure that you have access to the information you need.
What is a supply bond, and how do supply bonds work?
A supply bond is a type of surety bond that could be necessary when forming an agreement with a contractor.
The supplier would typically get this kind of contract bond from a surety company to give their word that its contractual obligations, such as supplying the specified items within the established timeframe and fulfilling quality standards, will be met.
It protects the project owner (known as the obligee) in the event that the supplier fails to provide the agreed-upon supplies. If he or she does not meet the deadline, the surety company will compensate the project owner for any monetary damage caused.
Who typically requires these surety bonds?
Supply bonds are often needed by project owners, especially those who are in the construction industry, to ensure prompt and acceptable delivery of goods and equipment. However, applicants must meet the applicable supply bond requirements to qualify for this type of bond.
What is the difference between a supply bond vs. performance bond?
Both supply and performance bonds are types of surety bonds. However, they serve different functions in building projects.
A supply bond ensures that supplies and equipment are delivered as stated in an agreement. Performance bonds, on the other hand, ensure that the entire project is completed in accordance with the requirements of the agreement.
While a supply bond centers around the supplier’s duties, a performance bond is designed to ensure that the contractor performs as promised on the entire project. Both bonds safeguard project owners financially by limiting the risks they face because of delays or poor performance.
Can any supplier get this kind of bond?
The truth is that supply surety bonds are not available to everyone. To limit their risk exposure, surety bond companies will look at a supplier’s track record and financial stability when deciding whether to approve a particular bond amount.
Only those who have proved to be reliable in the past and have good financial standing will qualify for these contract bonds.
What happens if a supplier fails to follow their end of the bargain?
A supply bond guarantees that a project owner will not suffer financial losses because of the non-conformance of a supplier. In the event that the supplier fails to meet the relevant standards, the surety company will pay the project owner compensation.
Why should I make S Philips Surety & Insurance Services, Inc. my surety company of choice?
If the project owner you are working with requires supply bonds, then you can turn to S Philips Surety & Insurance Services, Inc. for reliable service. With 40 years of experience in the industry, we are the surety bond experts that you can turn to when you need a material supply bond.
Our extensive experience and professionalism set us apart from our competitors, and our customer-centered focus ensures that you get a seamless and fuss-free experience.
In addition to supplier bonds, we also offer a wide range of bonds, such as lost document bonds, performance bonds, court bonds, and contractor license bonds.
What do supply bonds cost?
A supply bond cost will generally depend on the bond amount. Surety bond companies will base the cost on a percentage of the coverage amount. To learn more about what it will cost you to get a supply contract bond for your construction project, it’s best to get in touch with us.
How do I set up a supply bond?
To get started, you will need to fill out the quote form below. Supply us with your details and information about your requirements, and we will provide you with a fast online quote. If you are happy with the quote, contact us to set up the supply bond.
A supply bond is important for providing reassurance to a project owner. If you are ready to get started with a contract bond or would like to get more information, contact us today!
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