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 Colorado
No Colorado statute requires supply bonds. The state bond law, C.R.S. § 38-26-106, covers public works contracts over $50,000 for political subdivisions and over $150,000 for the state; a bond on a supply contract is set by the buyer.
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.