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 Massachusetts
Massachusetts buys supplies under the Uniform Procurement Act, M.G.L. c. 30B, which does not set a statewide supply bond. When a buyer wants one, it is set in the bid or contract documents.
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.