Supply Bond

A supply bond, in simple terms, is similar to an insurance policy ensuring that the proper supplies, materials or equipment is delivered to complete a job on time so that a project can be completed within budget and to the proper specifications. What that means is that a surety firm ensures that the company that is the supplier for a particular project has the means to provide the required materials to the contractor on time as specified in the contract.

In the case of a supply bond, the supplier becomes the principal, or the company to purchase the supply bond, rather than the contractor, which is the typical bond purchasing situation  and the contractor would become the oblige in this limited circumstance. There are many ways that a supplier could default, one way would be by either providing substandard materials, defective supplies or faulty equipment, another would be by providing not damaged, but pristine just short of immaculate items in a time frame far outside of that set forth in the contract.  Worst case scenario, whether by accident or design, meaning that whether the company is or is not at fault, the supplies or equipment does not arrive at all and then the surety firm does have options available to ensure that the project can still continue as planned.

Some of the possible remedies may include covering the cost of having to replace supplies that were not up to contractual standards from a different supplier at a higher rate or having to locate an entirely new supplier or possibly equipment rental or purchase if need be if this was also a part of the previous contract.

 


Application for


Current or expiring quote we are looking to beat:


Name of previous surety company writing to the bond:


Section I: Bond Applied for

Type of Bond

Effective Date

Expiration Date


Type of Company

CORP

LLC

DBA

Partnership

Bond Amount


(Obligee)


Obligee Address


Section II: General Information

Applicant's Name

Spouse Name


SS#

Spouse SS#

Home Phone


Residence Address

City

State

Zip


Status of Residency

Own

Rent

At Current Address Since


Date of Birth

Spouse Date of Birth

Business License Number


Business Name


Business Phone

Business Fax

Business Email


Business Address

City

State

Zip


Date Business BEGAN Under Present Individual or Firm Name

Business Tax ID


Has any company refused to issue bonds for any purpose?

Yes

No

Do you have any liens, claims or judgements against you?

Yes

No


Has applicant ever failed in business?

Yes

No

Has applicant filed bankruptcy in the last 10 years?

Yes

No


If yes, Chapter 7?

Yes

No

Chapter 11?

Yes

No

Chapter 13?

Yes

No


Date Filed for Bankruptcy?


Date of Discharge?


If yes to any, please explain:


Section III: Additional Parties

Name

Spouse Name


SS#

Spouse SS#

Home Phone


Home Address

City

State

Zip


Personal Financials

(if more than one owner, each has to fill out this app)

Statement of assets and liabilities as of


Assets Liabilities
Cash in Bank Notes Payable to Banks
Cash on Hand Notes to Others(excl. of equipment)
Stocks and Bonds Accounts Payable
Accounts Receivable Federal and State Income Tax Due
Notes Receivable All Other Taxes
Inventory Accruals, Payrolls, Etc.
Cash Value Life Insurance    
Equipment Due on Equipment
Real Estate Due on Real Estate
Other Assets Other Liabilities
    Surplus and Undivided Profits
    Capital Stock(if a corporation)
       
Total Assets Total Liabilities

Net Worth


Name of Owners

Name and Title of Officers

% of Ownership


Are you an insurance agent?

Yes

No

Agent License #

Agent State

Completion of this form constitutes permission for Cal Society Insurance Services to obtain customer information which will be used to determine bonding eligibility. This information will be held in the strictest confidence.