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 New Mexico
New Mexico has no statute requiring a standalone supply bond on public supply or equipment-only contracts. Material and equipment suppliers on public construction contracts over $25,000 are protected by the payment bond required under NMSA § 13-4-18 (New Mexico's Little Miller Act), which covers all persons 'supplying labor and material' to the contractor or subcontractors, with a right to sue on the bond after 90 days of nonpayment under § 13-4-19. A standalone supply bond guaranteeing a supplier's delivery on a supply-only purchase contract is not required by New Mexico law and would be a contract-imposed requirement.
- Under NMSA § 13-4-19, indirect material suppliers (those without a direct contract with the prime contractor) must give written notice to the contractor within 90 days of last supply, and must file suit within one year of final contract settlement.
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.