San Francisco City and County Supply Contract Bond
The County of San Francisco requires businesses in the area to apply for a bond in order to secure a supply contract with government offices and projects. This is necessary to ensure the compensation of the public should accredited applicants fail to deliver materials prescribed in the contract.
What is a Supply Contract?
A supply contract is a legal requirement normally required by the government. It serves as a formal agreement between a supplier and the local government highlighting the provisions of the material delivery. A prerequisite to the contract requires suppliers to secure a supply contract bond to protect the public should the business default.
Although the City and County of San Francisco do not require a credit check, surety companies will conduct it as part of their underwriting. No material delivery shall ensue without securing the proper permits prior to the drafting of the supply contract.
Industries that are typically required for such bond are importers, construction supplies, computers and electronics, cabinet manufacturers, and office supplies.
What is the San Francisco Supply Contract Bond?
Prior to the conduct of any material delivery, suppliers for government offices and projects must secure a supply contract bond with the City and County of San Francisco. The bond guarantees that suppliers or permittees will adhere to the City and County’s codes and standards and deliver expected supplies up to quality.
For more information, kindly visit the San Francisco City and County Office.
How does it work?
San Francisco City and County Supply Contract Bond must be issued by a surety bond provider accredited by the California Department of Insurance. The parties in the agreement are the Principal (contract supplier or applicant), Obligee (City and County of San Francisco), and Surety/Bond Company or Obligor (surety bond provider or insurance).
The Surety Company will guarantee the compensation (performance bond) of the Obligee should the Principal fail to deliver agreed-upon services or violate any licensing provisions. The Surety Company will receive and assess the validity of all public claims where claims may only amount to the total penal sum arranged in the bond form. The Principal shall reimburse all expenses covered by the Surety Company.
The Bond Company is secured through an indemnity agreement as the permit applicant or licensed business will ensure the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond.
How much does it cost?
Usually, the San Francisco Supply Contract Bond is between 1.5% and 7.5% of the total bond amount. This will ultimately vary depending on the applicant’s credit score, license history, and industry experience.
How can I apply for this bond?
At Surety Bond Authority, we are dedicated to helping you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.
To secure your supply contract bond, be sure to transact with a reputable surety company early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.
In the assessment phase, our underwriter will need the following information:
- Nature of your profession or business
- Credit score
- Financial strength
For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.
Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time!