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Contract bond

Vermont Supply Bond

No Vermont statute requires supply bonds. The state's bonding statutes cover construction (19 V.S.A. § 10 for transportation projects and 29 V.S.A. § 1108 for state buildings), so supply bonds are set by the purchase contract.

Bond at a glance
Vermont Supply BondContract bond
Set by the contract
Set byThe purchase contract or buying agency
Required byThe buyer or project owner
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 Vermont

No Vermont statute requires supply bonds. The state's bonding statutes cover construction (19 V.S.A. § 10 for transportation projects and 29 V.S.A. § 1108 for state buildings), so supply bonds are set by the purchase 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.

FAQs

Common questions.

Does Vermont 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.

Related bonds

Other Vermont bonds.

Contract bond

Vermont Bid Bond

A bid bond is a guarantee you submit with your bid.

Contract bond

Vermont Performance & Payment Bond

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

Contract bond

Vermont 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.

Sources

  1. 19 V.S.A. § 10, Duties of the Agency
  2. 29 V.S.A. § 1108

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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