What a supply bond is
A supply bond guarantees a supplier will deliver materials or equipment as the contract says. Public agencies and project owners use them on large supply contracts.
In Idaho
Idaho has no statute specifically requiring a supply bond from material or equipment suppliers. Idaho Code § 54-1926 requires a contractor-furnished payment bond (at least 85% of contract amount) on public works construction contracts of $50,000 or more, which protects those who supply labor or materials to the contractor, but the supplier itself is not required to post a bond. Idaho Code § 67-2806, which governs political subdivisions' procurement of personal property and services, allows only optional bid security of at least 5% of the amount bid and does not mandate a supply bond from any vendor.
- The payment bond under Idaho Code § 54-1926 is furnished by the prime contractor, not by the supplier, and applies only to construction contracts.
- No Idaho statute was found that separately mandates a supply bond from a materials or equipment vendor on any type of procurement contract.
You need this bond if you're
- A material supplier on a public contract
- An equipment vendor or manufacturer
- A distributor supplying a large private project
What the surety looks at
Your business, credit and the supply contract. Large contracts can need financial statements.