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 Minnesota
No Minnesota statute requires a separate supply bond. Minn. Stat. § 574.26 requires performance and payment bonds on public works, and the payment bond protects material suppliers. A supply bond, when used, is set by the buyer in the 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.