Iowa Supply Bond

Suppliers and contractors providing materials, equipment, or supplies for Iowa public improvement projects need this bond. It's typically required when entering supply-only contracts with public entities or when the contract value reaches $25,000 or more. The bond ensures suppliers fulfill their contractual obligations and protects project owners against non-delivery or contract breaches.

The Iowa Supply Bond amount equals the contract value and is set by the project owner (obligee). For public improvement contracts valued at $25,000 or more, Iowa Code § 573.2 requires the bond to be at least 75% of the contract price. For smaller contracts or supply-only agreements, the obligee determines the specific bond amount to match the contract value.

To file a claim against an Iowa Supply Bond, unpaid suppliers must submit an itemized sworn statement within 30 days of project completion and acceptance, as required under Iowa Code § 573.5. The claim should detail the materials, equipment, or services provided that remain unpaid. Claims are filed with the surety company that issued the bond, and the surety investigates to determine if the claim is valid under the bond terms.