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 Missouri
No Missouri statute requires a supply bond. RSMo § 107.170 requires a payment bond on public works over $50,000, which protects material suppliers but is not a supply bond. When used, a supply bond 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.