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 North Carolina
N.C. Gen. Stat. § 143-129 governs competitive bidding on public purchases of apparatus, supplies, materials, and equipment ($90,000 and above) but its bond cross-reference applies only to construction and repair work contracts, directing those to comply with Article 3 of Chapter 44A (the Little Miller Act). The statute imposes no performance or payment bond requirement on stand-alone supply or equipment purchase contracts. Public agencies and project owners may require a supply bond by contract.
- G.S. 143-129 triggers formal competitive bidding for purchases of supplies, equipment, or materials ≥ $90,000 but does not mandate a surety bond for those supply contracts.
- Bonds under G.S. 44A-26 attach only when the contract is for construction or repair work—not for the purchase of materials, apparatus, or equipment alone.
- The statute's bond cross-reference is expressly to 'Article 3 of Chapter 44A,' which covers construction contracts, confirming the omission of supply contracts from the bonding mandate.
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.