Supply Contract Bond

Apply for your Supply Contract Bond

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What does the bond cover?

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.

Who needs this bond?

Supply contractors often require supply bonds to guarantee their work.

Supply Contractors can include:
Office/School Supplies, Flooring/Counters, Fencing, Modular Buildings, Work Trailers, Landscape, Portable Restrooms, Cabinets, Painters, Computer/ Electronic Equip., Irrigation Equip., Boiler/Generators, Low Voltage Wiring, Software, Wireless Installations, Specialized Vehicles.

How much does this bond cost?

Rates start at 1% of the bond amount for well established business with good credit. Rate range is 1% to 10%. We have great solutions for contractors with credit challenges.

How do I apply?

To apply for a Supply Contract Bond, complete and submit the contact form online and our supply contract bonding team will give you a call within the hour to discuss your bonding needs (during normal business hours). We look forward to working with you!

You may also request a PDF application via an email to contract@southcoastsurety.com.

South Coast Surety specializes in Supply Contract Bonds

Now enjoy larger limits and lower rates with commercial contract express for our supply contract program

For Single Bonds to $1,000,000 and
Aggregate Programs to $1,500,000

Supply Contractors can include:
Office/School Supplies, Flooring/Counters, Fencing, Modular Buildings,
Work Trailers, Landscape, Portable Restrooms, Cabinets, Painters, Computer/ Electronic Equip., Irrigation Equip., Boiler/Generators,
Low Voltage Wiring, Software, Wireless Installations,
Specialized Vehicles

SUBMIT YOUR APPLICATION FOR A FAST APPROVAL

Where most surety agencies focus on the bricks and mortar construction contractor, South Coast Surety has established special surety relationships with surety companies that prefer writing for the service and supply type contractor.

Now Available, strong support for well established contractors with good financials and credit; as well as good solutions for contractors needing supply and service surety bond support, that have impaired credit and financials.

To Get a Larger Standard Program Established

Typical Requirements:

Completed "Supply/Service Contractor Questionnaire"

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

Most Recent Interim Personal financial statements of all business owner (s)

Bank letter verifying balances and credit arrangements

Resumes on owners and key personnel

WHAT IS A COMMERCIAL CONTRACT BOND?

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

Most Surety Companies are looking to support firms that have a well established history of successfully completing the size and scope of work they are being asked to bond. To determine the amount of surety support (single bond size and aggregate cost to complete limits) the surety will analyze the presented financial information.

Most Surety Markets are going to require CPA prepared business financial statements. The size of the business as well as the size of the jobs that will need performance and payment bond support will determine the level of presentation required by the surety.

For firms looking to do bonded work under $500k with around $1.5 to $2 mil. in outstanding aggregate, many surety companies will accept fully scheduled compilation statements. All sureties prefer that the revenue be recognized on a percentage completion basis.

For firms doing larger jobs, with annual revenues up to $10 mil. to $15 mil. most surety markets are going to require that the CPA prepare the financial statements on a reviewed basis. When you get much larger, the surety underwriters may require audited statements.

Supply Contract Bond

What Our Customers Have to Say

I have processed 2 defective title bonds through South Coast Surety and I am the type that gets worried for any little detail and want to make sure everything is done correctly the first time to prevent double work for myself and everybody. Knowing how I am both times I had to call customer service and they answered every little question I had in a very nice and gratifying way that made me feel I would not have any problems in which I did not. South Coast Surety has the ultimate best customer service.

5 Star Review

Gaby - CA
May 2019

I was shopping for a surety bond for the first time and having trouble communicating with several different companies. When I contacted South Coast Surety they responded quickly and performed the transaction quick and easy. I might have been able to find a lower price, but their professionalism was worth a couple extra dollars.

5 Star Review

KG C. - CA
April 2019

We are opening up a Mental Health Residential Treatment Center and needed a Surety bond since we will be handling some clients cash resources. I reached out to South Coast Surety, they sent me an application, paid our premium and had our bond sent to us immediately. Everyone I spoke to and emailed was courteous, attentive and responded very quickly. We will most definitely continue to get all of our bond services from South Coast.

5 Star Review

John F. - CA
September 2021

Great customer service from South Coast Surety. When I had questions about the bond and process, their customer service team assisted me with a sense of urgency and answered my questions. I recommend using their services. I will be a returning customer.

5 Star Review

P&C B. - CA
April 2021

I needed a surety bond and was referred by another company to south coast. I am very impressed with the level of customer service in every stage of issuing the bond, the rapid response to the get the bond issued and communication with the team. Great team and awesome service. I highly recommend South Coast Surety for you bond needs.

5 Star Review

Mirwais A. - CA
March 2021

I was in need of obtaining my CA Insurance Bond. I was able to obtain my required Bond quote online within minutes. I approved the quote and requested the Bond to be issued. On the same day, I received the Evidence of Coverage. Could not ask for better pricing or better service. I highly recommend South Coast Surety to meet a wide range of Bonding needs.

5 Star Review

Udo G. - NJ
January 2018

Celebrating 25 Years of Committed Surety Service

South Coast Surety has been proudly providing surety support to all fifty U.S. states for twenty years. Starting out as a small agency with a dream in San Clemente, California, we have steadily grown into one of the largest bond-only agencies in the nation. We write all commercial bonds and contract bonds for every American business and industry. Our greatest achievement is helping our clients grow their business alongside our own through coaching and obtaining larger bonding limits at the best rates. We work hard for our clients and take pride in bonding businesses that have been declined by our competitors.

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