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 Georgia
Georgia law requires payment and performance bonds on state construction contracts over $100,000, but not on supply contracts. Under the Georgia Procurement Manual, a state entity may require bonds on non-construction contracts, and the solicitation states the bond and amount.
- Bid bonds are generally required for construction contracts but only occasionally for non-construction contracts.
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.