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Contract bond

Michigan Supply Bond

Michigan's public works bond law covers contracts for building, altering or repairing public buildings and works over $50,000. It does not require bonds on contracts to supply goods. When a supply bond is used, the buyer's contract sets it.

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Bond at a glance
Michigan Supply BondContract bond
Set by the contract
LawMCL 129.201 (construction contracts only)
Set byThe contract or purchasing agency
Required byThe buyer or purchasing 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 Michigan

Michigan's public works bond law covers contracts for building, altering or repairing public buildings and works over $50,000. It does not require bonds on contracts to supply goods. When a supply bond is used, the buyer's contract sets it.

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 Michigan 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.

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Michigan Bid Bond

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Michigan Performance & Payment Bond

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

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Michigan 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.

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By state

Supply bonds in other states.

Alabama supply bondAlaska supply bondArizona supply bondArkansas supply bondCalifornia supply bondColorado supply bondConnecticut supply bondDelaware supply bondDistrict of Columbia supply bondFlorida supply bondGeorgia supply bondHawaii supply bondIdaho supply bondIllinois supply bondIndiana supply bondIowa supply bondKansas supply bondKentucky supply bondLouisiana supply bondMaine supply bondMaryland supply bondMassachusetts supply bondMinnesota supply bondMississippi supply bondMissouri supply bondMontana supply bondNebraska supply bondNevada supply bondNew Hampshire supply bondNew Jersey supply bondNew Mexico supply bondNew York supply bondNorth Carolina supply bondNorth Dakota supply bondOhio supply bondOklahoma supply bondOregon supply bondPennsylvania supply bondRhode Island supply bondSouth Carolina supply bondSouth Dakota supply bondTennessee supply bondTexas supply bondUtah supply bondVermont supply bondVirginia supply bondWashington supply bondWest Virginia supply bondWisconsin supply bondWyoming supply bond

Sources

  1. MCL 129.201 (Michigan Legislature)

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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