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 Utah
Utah does not require supply bonds by statute. Under Utah Admin. Code R33-111-302, a state procurement official may require a surety or performance bond on a non-construction contract, but only if the solicitation says so and states the amount and the work covered.
- The rule says bond requirements should not be used to unreasonably eliminate competition.
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.