A supply bond falls under the umbrella term of contractor surety bonds. It guarantees the delivery of materials used in the course of a construction project but does not cover costs of labor or installation of the materials involved. This surety provides financial compensation for the purchaser in the event that the materials supplier is unable to fulfill the terms of their contract. In the event that the bond must pay out, the supplier is then obligated to return the money to the surety.
The contractor during the contract phase and before work begins. They are often mandatory for projects that are publicly funded, but the requirements vary from state to state. Federally funded projects generally require a supply bond if the cost of the materials involved exceeds $100,000, and many states have the same or similar thresholds.
Apply for a Supply Bond
Contractor Surety Group has programs available that are designed to help small and large companies obtain the construction surety bonds they require. If you have any questionsor would like to set up a consultation, call today or request a quote. Our specialists will be in touch within 24 hours.