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Supply Bond

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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.).

Frequent Questions

Where can I get a supply bond form?

We have the standard AIA supply bond forms on file which most obligees use. The obligee may have their own special bond form with their own bond language; in which case you need to obtain it from them.

Can I get a bond for a new business?

Yes. We have credit based programs available for smaller contracts which allow new businesses to obtain contract bonding. However, this is not possible for larger contracts unless the owner(s) have substantial equity within the company and an impressive resume of past experience.

Will the supply bond guarantee installation?

No. They specifically exclude the guarantee of any installation. They only guarantee the supply of materials and goods.

I also need a performance bond. Do I need a separate application?

Only if you need a standalone supply bond. You do not need a separate application if it is required alongside a performance and payment bond.

Why do you look at my personal credit?

To determine your likelihood of triggering claims and your ability to pay them. This is important, as surety bonds are a form of credit to you, not insurance. Sureties will look to you for reimbursement on any legitimate claims.

What if a false claim is filed?

You must contact us immediately, as we have a team of claim specialists here to find a resolution for you. Keep in mind, it is crucial that you work with an expert in the surety industry. Learn more about how to ensure you choose the proper bond company.

Are you looking for a different type of bond?

You can take a look at our full list of contract bonds.

Get Your Surety Bonds from the Best Bonding Companies
We work with the top A-rated, T-listed surety bond companies in the nation

Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
David Tillotson
Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

The Nation’s #1 Volume Surety Bond Service
Our company writes $4,000,000,000+ in bonds each year!
  • #1 Bond Writer
    We are the nation's largest volume bond producer.
  • Easy Process
    Fastest online surety bond application process; we approve bonds instantly.
  • Lowest Rates
    Our high volume allows us to negotiate lower rates on your behalf.
  • Claim Specialists
    Your JW surety bond agent will be your claims advocate when you need them most.

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About JW Surety Bonds
We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company.