Supply Bond Definition: What is It and Why Do You Need One?
A supply bond is a type of construction bond that guarantees you will deliver all materials specified in a given contract, and you are required to obtain a bond for working on public jobs to protect the public.
If you do not deliver the materials and goods according to the contract, a claim can be filed on the bond. If you would like to learn more about what surety bonds are and how they work, you can read our detailed guide here.
How Much Does a Supply Bond Cost?
Costs are a small percentage of the bond amount, and vary by applicant (financial strength, industry experience, etc.).