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 Iowa
No Iowa law requiring supply bonds was found. Iowa Code chapter 573 sets bonds for public improvement construction contracts, not for purchases of goods, so supply bonds are set by the purchase 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.