Supply Bond Definition: What is It and Why Do You Need One?
A supply bond is a guarantee that 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.
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.).