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Contract bond

California Supply Bond

California has no statewide statute requiring supply bonds. The bonds mandated by state law for public works—Cal. Civ. Code § 9550 and Cal. Pub. Contract Code § 7103—are payment bonds running from contractors to protect workers and suppliers, not bonds from suppliers guaranteeing delivery. San Francisco is a documented example of a California local government that maintains a specific supply contract bond requirement for vendors supplying commodities and services to city agencies under S.F. Admin. Code Ch. 21, § 21.10.

Bond at a glance
California Supply BondContract bond
Set by cities and counties
LawNo California state statute. Statewide public works bonds limited to payment bonds (Cal. Civ. Code § 9550; Cal. Pub. Contract Code § 7103). Locally, S.F. Admin. Code Ch. 21, § 21.10 authorizes the contracting officer to require a bond on commodity/service supply contracts.
AmountNo statewide amount for supply bonds. San Francisco caps the required bond at 10% of the estimated contract value per S.F. Admin. Code § 21.11.
Required byLocal public agencies under their own procurement codes. No California state agency requires a supply bond by statute. San Francisco's Office of Contract Administration invokes the authority under Ch. 21, § 21.10 for city commodity contracts.
How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
About this bond

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 California

California has no statewide statute requiring supply bonds. The bonds mandated by state law for public works—Cal. Civ. Code § 9550 and Cal. Pub. Contract Code § 7103—are payment bonds running from contractors to protect workers and suppliers, not bonds from suppliers guaranteeing delivery. San Francisco is a documented example of a California local government that maintains a specific supply contract bond requirement for vendors supplying commodities and services to city agencies under S.F. Admin. Code Ch. 21, § 21.10.

  • S.F. Admin. Code § 21.10 says a contracting officer 'may require' a bond—it is discretionary, not mandatory, even at the local level.
  • The statewide payment bond (Cal. Civ. Code § 9550; Cal. Pub. Contract Code § 7103) protects suppliers from nonpayment on public works but flows in the opposite direction: it runs from the prime contractor to claimants, not from a supplier to the buyer.
  • Other California public agencies may require supply bonds purely as a contract term; no second California city's local ordinance was identified in research.

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.

FAQs

Common questions.

Does California law require supply bonds?

Usually the contract or the buying agency sets it, not a statewide law. The bid or contract documents state the amount.

What does it cost?

You pay a premium, not the bond amount. The surety sets the premium after it reviews your application, usually as a percentage of the bond amount. We show you the terms before you commit.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

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California Performance & Payment Bond

Performance and payment bonds usually come as a pair once you win a job.

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California Maintenance Bond

A maintenance bond, also called a warranty bond, guarantees your finished work is free of defects in materials and workmanship for a set period, often one or two years.

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