What is a Supply Bond?
A Supply Bond is a guarantee that you will deliver all construction products & supplies as promised in a supply contract. These bonds are required in the construction industry when a contractor is doing jobs considered to be public works. These bonds guarantee that all supplies & materials are delivered as promised by the supply contract.
How does a Supply Bond Work?
A Supply Bond may be required from a contractor that is supplying building supplies for a public works job. These bonds basically guarantee that all supplies agreed upon are delivered on time, in full, and free of defects. Should a contractor default and not supply all contracted items, the surety carrier would step in to fill the order. At this point the supplier would either complete the order or allow the surety carrier to complete the supply order, then repay the surety carrier.
How much does a Supply Bond Cost?
The cost of this type of bond is based on the bond amount required by the project owner and the cost of the supplies. A big factor in pricing is determined by the total cost of the supplies, any supply contracts and their specifications, corporate financials and the personal credit report of all owners and spouses. Someone with good credit may pay a lesser premium than a person with poor credit. However, just because someone has poor credit does not mean we cannot help you. At Universal Service Agency, we strive to find our clients the best rates with the strongest rated carriers to insure you are getting the best bond coverage available.
How do I get a Supply Bond?
You can get Supply Bonds by contacting surety bond agents/brokers. Since you’re already here, you can give us a call at 215-646-2400 or Apply Now here.
How to Choose a Bonding Company?
Universal Service Agency offers Surety Service Made Simple. We are the fastest surety only agency in the country, with over 100 years of combined surety experience servicing all 50 states. We exhaust all of our resources to get you the fastest turnaround times and lowest rates. We can help anyone, even clients that may not fit into the standard market. You can get a free quote here or call our bond experts at 215-646-2400.
How long does it take to get a Supply Bond?
Universal can issue bonds the same day an application is received. The amount of time between application and issuance is affected by a number of factors though, including but not limited to, the size of the obligation, the type of bond, and promptness of the premium payment.
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Universal Service Agency is the fastest “surety only” agency in the country, with over 100 years of combined surety experience servicing all 50 states.