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 Hawaii
Hawaii's procurement code requires performance and payment bonds on construction contracts over $25,000. No Hawaii statute requiring supply bonds on contracts for goods was found; when used, the purchasing agency sets them in the solicitation and 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.