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Contract bond

Delaware Supply Bond

Delaware law lets state agencies require bonds on contracts for materiel (supplies) under 29 Del. C. § 6927: a bid bond or security of at least 10% of the bid, and a performance bond generally equal to 100% of the contract award. For smaller material purchases the requirement can be reduced or waived if the bid specifications say so.

Bond at a glance
Delaware Supply BondContract bond
Required by state law
Law29 Del. C. § 6927
Bid securityAt least 10% of the bid, when the agency requires it
Performance bond100% of the contract award, when the agency requires it
ObligeeThe procuring State agency
Bond formStandard Office of Management and Budget form
Required byThe procuring Delaware state agency
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 Delaware

Delaware law lets state agencies require bonds on contracts for materiel (supplies) under 29 Del. C. § 6927: a bid bond or security of at least 10% of the bid, and a performance bond generally equal to 100% of the contract award. For smaller material purchases the requirement can be reduced or waived if the bid specifications say so.

  • Below the threshold amounts, an irrevocable letter of credit or other security may replace the bond if the bid specifications allow it.
  • The performance bond also covers payment to everyone furnishing materiel or labor on the contract.

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 Delaware 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.

Related bonds

Other Delaware bonds.

See all 27 Delaware bonds with prices →

Contract bond

Delaware Bid Bond

A bid bond is a guarantee you submit with your bid.

Contract bond

Delaware Performance & Payment Bond

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

Contract bond

Delaware 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.

Sources

  1. 29 Del. C. § 6927, Bid and contract security (Delaware Code Online)

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 23, 2026.

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