Supply bonds are a type of contract bond. These bonds require a surety to guarantee a supplier will provide the proper materials needed as according to a contract. The entity requiring the materials is often a government or public body, but sometimes the entity is a private company or individual.
When a public body requests a supply contract bond, they often request bids from several different suppliers. When the governmental body opts for a bidder, they will request a supply contract bond in the full amount or a percentage of the contact value.
Our office can underwrite these bonds, even when the circumstances seem slightly confusing. Although Offenhartz & Pedersen, LTD. specializes in court bonds, we also have familiarity with contract bonds such as these.