Which type of bond is written to ensure contractor payments for supplied materials?

The type of bond written to ensure contractor payments for supplied materials is known as a supply bond. This specific bond guarantees that materials purchased will be delivered and paid for, providing financial security to suppliers by ensuring that they will receive payment, even if the contractor defaults or fails to meet their obligations.

In construction projects, suppliers often face risks when providing materials to contractors, especially if payments are contingent upon the contractor's overall project funding or completion. A supply bond mitigates these risks by ensuring that suppliers are compensated for their materials regardless of the contractor's financial situation.

While other bonds like performance bonds and maintenance bonds serve different purposes—performance bonds ensure that the contractor completes the project in accordance with the contract, and maintenance bonds guarantee that the contractor will perform maintenance on the completed project for a specified period—none of them specifically address the issue of payment for supplied materials. Bid bonds are also unrelated, as they are intended to ensure that a bidder on a project will enter into a contract and provide the required performance and payment bonds if awarded the project.