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 District of Columbia
District of Columbia law requires performance and payment bonds on construction contracts over $100,000 and lets the Chief Procurement Officer set rules for security on non-construction service contracts. No law requiring bonds on contracts for goods was found; when used, the solicitation and contract set them.
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.