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 Wisconsin
No Wisconsin statute requires supply bonds. State purchasing rules (Wis. Admin. Code Adm 7.08) let the agency require a performance surety when a contractor's failure to perform would cause damage, applied the same way to every bidder on that solicitation.
- The surety must be authorized by the Wisconsin Commissioner of Insurance.
- The State Procurement Manual (PRO-607) lists a performance surety as optional, justified by things like a history of nonperformance or harm to state operations from late delivery.
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.