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 Oregon
No Oregon statute requires supply bonds. ORS 279C.380 requires performance and payment bonds on public improvement contracts, not on purchases of goods. When used, a supply bond is set by the buyer in the solicitation or 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.