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 Ohio
Ohio has no statute that specifically creates or mandates a 'supply bond' as a named instrument. Ohio Rev. Code § 9.311 requires bids for public contracts to supply materials or render services to be accompanied by performance bonds, payment bonds, or a combination thereof executed by a licensed Ohio surety, but the statute does not label these 'supply bonds.' Material suppliers on public improvement contracts are protected through the payment bond required by Ohio Rev. Code § 153.54; on private or supply-only contracts, a supply bond may be required by the project owner's contract.
- Ohio's Little Miller Act (Ohio Rev. Code §§ 153.54–153.57) protects subcontractors and material suppliers through the payment bond on public improvement contracts, but does not create a separate 'supply bond' instrument.
- Ohio Rev. Code § 9.311 treats bonds for supply/materials contracts and construction contracts identically—each must be executed by a surety licensed to write bonds in Ohio—but does not mandate a standalone supply bond by name.
- No Ohio administrative code rule or agency guidance was found establishing a mandatory standalone supply bond program statewide.
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.