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 Nevada
Nevada has no statute specifically requiring a supply bond for a pure materials or equipment supply contract. NRS § 339.025 mandates performance and payment bonds for public construction contracts over $100,000 (each bond at least 50% of the contract amount), but that applies to construction work and does not cover standalone supply agreements. For state procurement, NRS § 333.360 gives the Administrator of the Purchasing Division discretionary authority to require a bond up to the full contract amount before executing a supply contract, but this is permissive, not mandatory.
- NRS § 339.025 explicitly applies to 'new construction, repair or reconstruction of any public building or other public work,' not to standalone supply or equipment purchase agreements.
- Material suppliers on public works construction projects are protected by the contractor's payment bond under NRS § 339.025 and can file claims under NRS § 339.035, but this does not mean a supply bond is required of the supplier itself.
- For large public supply contracts, owners may require a supply bond by contract as a matter of procurement policy.
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.