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 Oklahoma
Oklahoma's Little Miller Act (61 O.S. § 1) requires a bond equal to the full contract price for public construction and repair contracts exceeding $100,000, and that bond expressly protects material suppliers within those construction contracts. However, the statute applies only to 'construction or repair' of public buildings or improvements—not to stand-alone supply-only contracts. No Oklahoma statute mandates a separate supply bond for a procurement contract that covers materials or equipment alone; whether such a bond is required depends on the individual agency's solicitation or contract documents.
- 61 O.S. § 1 bond covers 'all suppliers of labor, material, rental of machinery or equipment, and repair of and parts for equipment' within a covered construction contract, but the contract itself must be for construction or repair, not pure supply.
- For construction management trade contracts or subcontracts over $50,000, 61 O.S. § 113 separately requires bonds equal to the contract price.
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.