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 Mississippi
Mississippi's public bond law, Miss. Code § 31-5-51, covers performance and payment bonds on contracts for the construction, alteration or repair of public buildings and public works. It does not set a supply bond; when one is used, the buyer's bid or contract documents set it.
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.