28.102-3 Contract clauses
Source: FAR 28.102-3 on acquisition.gov
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.
(a) Insert a clause substantially the same as the clause at 52.228-15, Performance and Payment Bonds-Construction, in solicitations and contracts for construction that contain a requirement for performance and payment bonds if the resultant contract is expected to exceed $150,000. The contracting officer may revise paragraphs (b)(1) and/or (b)(2) of the clause to establish a lower percentage in accordance with 28.102-2(b). If the provision at 52.228-1 is not included in the solicitation, the contracting officer must set a period of time for return of executed bonds.
(b) Insert the clause at 52.228-13, Alternative Payment Protections, in solicitations and contracts for construction, when the estimated or actual value exceeds $35,000 but does not exceed $150,000. Complete the clause by specifying the payment protections selected (see 28.102-1(b)(1)) and the deadline for submission. The contracting officer may revise paragraph (b) of the clause to establish a lower percentage in accordance with 28.102-2(c).