The Iowa Supply Bond guarantees that suppliers will deliver materials and equipment according to contract terms for public improvement projects. This bond protects project owners and ensures payment for labor, materials, and supplies. It's typically required when the contract value equals or exceeds $25,000, though th…
Overview
What it is.
The Iowa Supply Bond guarantees that suppliers will deliver materials and equipment according to contract terms for public improvement projects. This bond protects project owners and ensures payment for labor, materials, and supplies. It's typically required when the contract value equals or exceeds $25,000, though th…
Who usually needs it
Suppliers and contractors providing materials, equipment, or supplies for public improvement projects or supply-only contracts in Iowa
Pricing & timing
What to expect.
Generic pricing
Performance bonds guarantee that a contractor will complete a project according to the contract terms. Typical Pricing:. • Small contracts: Commonly around 1–5% of the contract value (one-time upfront premium). • Larger contracts: Rates generally scale lower as contract size increases. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Full underwriting required: Credit, financials, experience, and bon…
Typical timeframe
Full underwriting required — typically 3–5 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateIABond amount$25,000ObligeeProject owners and public entitiesBond classPerformance BondCategoryConstructionBondIowa Supply BondPlain descriptionThe Iowa Supply Bond guarantees that suppliers will deliver materials and equipment according to contract terms for public improvement projects. This bond protects project owners and ensures payment for labor, materials…Who needs this bondSuppliers and contractors providing materials, equipment, or supplies for public improvement projects or supply-only contracts in Iowa
FAQ
Common questions.
What is the required bond amount for an Iowa Supply Bond?
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.
Who needs an 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.
How do I file a claim against an Iowa Supply Bond?
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.
