WHAT IS A SUPPLY BOND?
A supply bond is a type of surety bond that guarantees a supplier will produce the supplies or materials outlined in the agreed upon contract. If the supplier does not meet the obligations of the contract, the bond protects the obligee from any losses.
HOW MUCH IS A SUPPLY BOND?
The cost of a Supply bond will vary on the level of assurance the principal can provide. Other factors include the bond amount, and the type of material or product being supplied. States have varying requirements, while federal projects generally require a supply bond when the amount of the obligation is over $150,000.
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