FAR 52.228-15 - 52.228-15 Performance and Payment Bonds—Construction.
Current Status
DEVIATION ACTIVE
WARNING: This clause is affected by 1 active class deviation. Use the deviation text, NOT the standard clause text from the eCFR.
| Last Checked | 2026-03-11 19:40 UTC |
| Authoritative Source | https://www.ecfr.gov/current/title-48/section-52.228-15 |
Active Class Deviations
2020-O0016 - Class Deviation 2020-O0016 â Original Documents, Signatures, Seals, and Notarization
Effective: None
Effect: SUBSTITUTE
Substitute clause 52.228-15
Compare clause text (side-by-side)
Standard Clause Text (eCFR)
As prescribed in 28.102-3(a), insert a clause substantially as follows: Performance and Payment BondsâConstruction (JUN 2020) (a) Definitions. As used in this clauseâ
Original contract price means the award price of the contract; or, for requirements contracts, the price payable for the estimated total quantity; or, for indefinite-quantity contracts, the price payable for the specified minimum quantity. Original contract price does not include the price of any options, except those options exercised at the time of contract award. (b) Amount of required bonds. Unless the resulting contract price is valued at or below the threshold specified in Federal Acquisition Regulation 28.102-1(a) on the date of award of this contract, the successful offeror shall furnish performance and payment bonds to the Contracting Officer as follows: (1) Performance bonds (Standard Form 25). The penal amount of performance bonds at the time of contract award shall be 100 percent of the original contract price. (2) Payment Bonds (Standard Form 25-A). The penal amount of payment bonds at the time of contract award shall be 100 percent of the original contract price. (3) Additional bond protection. (i) The Government may require additional performance and payment bond protection if the contract price is increased. The increase in protection generally will equal 100 percent of the increase in contract price. (ii) The Government may secure the additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond. (c) Furnishing executed bonds. The Contractor shall furnish all executed bonds, including any necessary reinsurance agreements, to the Contracting Officer, within the time period specified in the Bid Guarantee provision of the solicitation, or otherwise specified by the Contracting Officer, but in any event, before starting work. (d) Surety or other security for bonds. The bonds shall be in the form of firm commitment, supported by corporate sureties whose names appear on the list contained in Treasury Department Circular 570, individual sureties, or by other acceptable security such as postal money order, certified check, cashier's check, irrevocable letter of credit, or, in accordance with Treasury Department regulations, certain bonds or notes of the United States. Treasury Circular 570 is published in the Federal Register or may be obtained from the U.S. Department of the Treasury, Financial Management Service, Surety Bond Branch, 3700 East West Highway, Room 6F01, Hyattsville, MD 20782. Or via the internet at http://www.fms.treas.gov/c570/. (e) Notice of subcontractor waiver of protection (40 U.S.C. 3133(c)). Any waiver of the right to sue on the payment bond is void unless it is in writing, signed by the person whose right is waived, and executed after such person has first furnished labor or material for use in the performance of the contract. (End of clause) [65 FR 46071, July 26, 2000, as amended at 70 FR 57455, Sept. 30, 2005; 71 FR 67779, Nov. 22, 2006; 75 FR 53135, Aug. 30, 2010; 85 FR 27096, May 6, 2020]
As Modified by Deviation
52.228-15, Performance and Payment Bonds—Construction (DEVIATION 2020- O0016), which removes the requirements for seals on Standard Forms. ○ 52.228-16, Performance and Payment Bonds—Other than Construction (DEVIATION 2020-O0016), which removes requirements for seals on Standard Forms. When processing assignment of claims per FAR subpart 32.8— A copy of the assignment instrument is acceptable, in lieu of a true copy of the assignment instrument as required by FAR 32.802(e); and Electronic signatures by responsible parties and electronic filing of assignment instruments and notices of assignments as outlined in attachments 1 and 2 are acceptable, in lieu of the requirements at FAR 32.805 and DFARS 232.805. When executing novation agreements and change-of-name agreements per FAR part 42— Copies of the documents listed at FAR 42.1204(f) are acceptable in lieu of authenticated or certified copies; and Novation Agreements as described at FAR 42.1204(i) and Change-of-Name Agreements as described at FAR 42.1205(b) do not require corporate seals. This class deviation remains in effect until rescinded. My point of contact is Larry McLaury, who is available by telephone at 703-697-6710 or by email at Larry.j.mclaury2.civ@mail.mil. Kim Herrington Acting Principal Director, Defense Pricing and Contracting Attachments:
As stated 2 Attachment 1 Class Deviation 2020-O0016 Original Documents, Signatures, Seals, and Notarization Changes to the text are indicated by a change bar in the right-hand margin. FEDERAL ACQUISITION REGULATION PART 28—BONDS AND INSURANCE * * * * * 28.002 Policy. (DEVIATION 2020-O0016) For purposes of this part, electronic signatures and electronic, mechanically-applied, or printed dates may be used and shall be considered original signatures and dates, without regard to the order in which they were affixed. SUBPART 28.1—BONDS AND OTHER FINANCIAL PROTECTIONS * * * * * 28.106 Administration. 28.106-1 Bonds and bond-related forms. (DEVIATION 2020-O0016) The following Standard Forms (SF’s) and Optional Forms (OF’s), shall be used, except in foreign countries, when a bid bond, performance or payment bond, or an individual surety is required. The bond forms shall be used as indicated in the instruction portion of each form, except that a seal is not required. For SF 28 also see 28.203(b). * * * * * 28.106-8 Payment to subcontractors or suppliers. (DEVIATION 2020-O0016) The contracting officer will only authorize payment to subcontractors or suppliers from an ILC (or any other cash equivalent security) upon a judicial determination of the rights of the parties, a signed statement by the contractor that the payment is due and owed, or a signed agreement between the parties as to amount due and owed. * * * * * SUBPART 28.2 – SURETIES AND OTHER SECURITY FOR BONDS * * * * * Page 1 of 13 Attachment 1 Class Deviation 2020-O0016
Original Documents, Signatures, Seals, and Notarization Changes to the text are indicated by a change bar in the right-hand margin. 28.203 Acceptability of individual sureties. (DEVIATION 2020- O0016) * * * * * (b) An individual surety must execute the bond, and the unencumbered value of the assets (exclusive of all outstanding pledges for other bond obligations) pledged by the individual surety, must equal or exceed the penal amount of each bond. The individual surety shall provide a security interest in accordance with 28.203-1 and execute the Standard Form 28, except that the words “being duly sworn, depose and say” on the Standard Form 28 are replaced with the word “affirm” and such Standard Form 28 is not required to be sworn and notarized. One individual surety is adequate support for a bond, provided the unencumbered value of the assets pledged by that individual surety equal or exceed the amount of the bond. An offeror may submit up to three individual sureties for each bond, in which case the pledged assets, when combined, must equal or exceed the penal amount of the bond. Each individual must accept both joint and several liability to the extent of the penal amount of the bond. * * * * * 28.203-5 Release of lien. (DEVIATION 2020-O0016) (a) After consultation with legal counsel, the contracting officer shall release the security interest on the individual surety’s assets using the Optional Form 90, Release of Lien on Real Property, or Optional Form 91, Release of Personal Property from Escrow, or a similar release as soon as possible consistent with the conditions in subparagraphs (a)(1) and (2) of this subsection. A surety’s assets pledged in support of a payment bond may be released to a subcontractor or supplier upon Government receipt of a Federal district court judgment, or a sworn statement by the subcontractor or supplier that the claim is correct along with a written authorization of the release signed by the surety saying that it approves of such release. * * * * * PART 32 – CONTRACT FINANCING Page 2 of 13 Attachment 1 Class Deviation 2020-O0016 Original Documents,...
Full Current Text
Show full clause text
52.228-15 Performance and Payment BondsâConstruction. As prescribed in 28.102-3(a), insert a clause substantially as follows: Performance and Payment BondsâConstruction (JUN 2020) (a) Definitions. As used in this clauseâ Original contract price means the award price of the contract; or, for requirements contracts, the price payable for the estimated total quantity; or, for indefinite-quantity contracts, the price payable for the specified minimum quantity. Original contract price does not include the price of any options, except those options exercised at the time of contract award. (b) Amount of required bonds. Unless the resulting contract price is valued at or below the threshold specified in Federal Acquisition Regulation 28.102-1(a) on the date of award of this contract, the successful offeror shall furnish performance and payment bonds to the Contracting Officer as follows: (1) Performance bonds (Standard Form 25). The penal amount of performance bonds at the time of contract award shall be 100 percent of the original contract price. (2) Payment Bonds (Standard Form 25-A). The penal amount of payment bonds at the time of contract award shall be 100 percent of the original contract price. (3) Additional bond protection. (i) The Government may require additional performance and payment bond protection if the contract price is increased. The increase in protection generally will equal 100 percent of the increase in contract price. (ii) The Government may secure the additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond. (c) Furnishing executed bonds. The Contractor shall furnish all executed bonds, including any necessary reinsurance agreements, to the Contracting Officer, within the time period specified in the Bid Guarantee provision of the solicitation, or otherwise specified by the Contracting Officer, but in any event, before starting work. (d) Surety or other security for bonds. The bonds shall be in the form of firm commitment, supported by corporate sureties whose names appear on the list contained in Treasury Department Circular 570, individual sureties, or by other acceptable security such as postal money order, certified check, cashier's check, irrevocable letter of credit, or, in accordance with Treasury Department regulations, certain bonds or notes of the United States. Treasury Circular 570 is published in the Federal Register or may be obtained from the U.S. Department of the Treasury, Financial Management Service, Surety Bond Branch, 3700 East West Highway, Room 6F01, Hyattsville, MD 20782. Or via the internet at http://www.fms.treas.gov/c570/. (e) Notice of subcontractor waiver of protection (40 U.S.C. 3133(c)). Any waiver of the right to sue on the payment bond is void unless it is in writing, signed by the person whose right is waived, and executed after such person has first furnished labor or material for use in the performance of the contract. (End of clause) [65 FR 46071, July 26, 2000, as amended at 70 FR 57455, Sept. 30, 2005; 71 FR 67779, Nov. 22, 2006; 75 FR 53135, Aug. 30, 2010; 85 FR 27096, May 6, 2020]