Bond Programs

A Supply Bond is a type of contract bond that guarantees that the supplier will furnish supplies or materials as contracted. Should the supplier default, the surety will underwrite the purchaser of the supplies against any loss. This bond is required by the project owner or state or federal law to secure public construction projects.

As with all contract bonds, Supply Bonds are underwritten with a full submission of a questionnaire, financial statements, etc. The ability to attain supply bonds is slightly less cumbersome and easier than the standard construction bond.

Supply Contract Bonds include:

Bid bonds, which provide financial assurance that the bid has been submitted in good faith, and that the contractor intends to enter into the contract at the price bid and provide the required performance and payment bonds.

Performance bonds, which protect the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.

Payment bonds, which guarantee that the contractor will pay certain subcontractors, laborers, and material suppliers that, are associated with the project.

Supply Contract Surety is Relationship Driven

Most surety companies issue service bonds through surety bond producers. The first step toward establishing surety credit is to contact a professional surety bond producer who:

* Understands the intricate process of surety bonding and the unique underwriting standards and practices of individual surety companies;

* Matches the needs of the contractor with the surety company that is best suited to service those needs;

* Guides the contractor through the bonding process and assists in managing the contractor’s surety capacity;

* Creates and nurtures a successful relationship between the contractor and the surety company;

* Provides introduction to qualified accountants, bankers, and lawyers who understand the construction business;

* Offers sound business advice, management consulting, and technical expertise to help the contractor maintain growth and profitability.

South Coast Surety is an expert is placing Supply bonds, with decades of experience covering a wide spectrum of businesses.

To get the very best program available, we need:

Completed "Supply/Service Contractor Questionnaire"

Last three (3) CPA prepared, company year end financial statements*

Personal financial statements of the business owner (s)

Bank letter verifying balances and credit arrangements

Resumes on owners and key personnel