What a supply bond is
A supply bond guarantees a supplier will deliver materials or equipment as the contract says. Public agencies and project owners use them on large supply contracts.
In Alaska
Alaska's public bond law, AS 36.25.010, covers performance and payment bonds on contracts for building, altering or repairing public buildings and public works. It does not set a supply bond; when one is used, the buyer's bid or contract documents set it.
- AS 36.25.010(b) lets the contracting officer require a performance bond or other security in cases beyond those listed in subsection (a).
You need this bond if you're
- A material supplier on a public contract
- An equipment vendor or manufacturer
- A distributor supplying a large private project
What the surety looks at
Your business, credit and the supply contract. Large contracts can need financial statements.