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 Nebraska
Nebraska has no statewide statute requiring a standalone supply bond on materials or equipment contracts. Neb. Rev. Stat. § 52-118 (the Little Miller Act) requires a payment bond on public construction contracts covering labor and materials actually used in the work, but this is a construction payment bond — not a separate supply bond. For certain county supply-and-materials contracts of $50,000 or less, Neb. Rev. Stat. § 31-118 requires a performance bond or equivalent security conditioned on faithful performance, but this provision is limited to county drainage-related procurement.
- § 52-118 protects unpaid material suppliers on public construction projects through the payment bond, but this is not the same as a standalone supply bond guaranteeing delivery
- § 31-118 allows a letter of credit or certified check in lieu of a performance bond for qualifying county supply contracts
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.