28.102-3
Contract clauses
Insert the appropriate bond or payment protection clause in construction contracts based on value thresholds, and ensure all requirements and deadlines are clearly specified and met.
Overview
FAR 28.102-3 prescribes the use of specific contract clauses related to performance and payment bonds or alternative payment protections in construction contracts, based on contract value thresholds. For contracts expected to exceed $150,000, the clause at 52.228-15 must be included, requiring performance and payment bonds. For contracts valued between $35,000 and $150,000, the clause at 52.228-13 is required, mandating alternative payment protections. Contracting officers have discretion to adjust certain percentage requirements and must specify deadlines for bond or protection submissions if not otherwise stated.
Key Rules
- Performance and Payment Bonds Clause (52.228-15)
- Required in construction contracts over $150,000; allows adjustment of bond percentages and requires a set deadline for bond submission if not otherwise specified.
- Alternative Payment Protections Clause (52.228-13)
- Required for construction contracts between $35,000 and $150,000; contracting officer must specify the type of payment protection and submission deadline, with flexibility to adjust percentage requirements.
Responsibilities
- Contracting Officers: Must insert the correct clause based on contract value, specify deadlines, and may adjust percentage requirements as allowed.
- Contractors: Must comply with the bond or payment protection requirements and submit documentation by the specified deadlines.
- Agencies: Ensure oversight and compliance with clause inclusion and proper administration of bond/protection requirements.
Practical Implications
- Ensures financial protections for the government and subcontractors on construction projects.
- Contractors must be aware of which clause applies and prepare the required bonds or protections promptly.
- Common pitfalls include missing deadlines or submitting insufficient bond amounts, which can delay contract performance or result in noncompliance.