52.228-12 Prospective Subcontractor Requests for Bonds
Source: FAR 52.228-12 on acquisition.gov
Contractors must promptly provide a copy of the payment bond to any prospective subcontractor or supplier who requests it for contracts where a payment bond has been furnished.
Overview
FAR 52.228-12 requires contractors to provide a copy of the payment bond to any prospective subcontractor or supplier who requests it, provided the contract is one for which a payment bond has been furnished to the Government. This clause is intended to ensure transparency and facilitate the ability of subcontractors and suppliers to verify the existence and terms of payment bonds, which protect their right to payment for labor or materials supplied to the project. The requirement is rooted in statutory mandates and is applicable when the contract involves a payment bond under 40 U.S.C. chapter 31, subchapter III (Miller Act bonds).
Key Rules
- Provision of Payment Bond Copies
- Contractors must promptly provide a copy of the payment bond to any prospective subcontractor or supplier who requests it.
- Applicability Trigger
- This obligation applies only when a payment bond has been furnished to the Government for the contract.
Responsibilities
- Contracting Officers: Ensure inclusion of this clause in applicable solicitations and contracts.
- Contractors: Promptly provide payment bond copies upon request to prospective subcontractors or suppliers.
- Agencies: Oversee contractor compliance with this requirement.
Practical Implications
- This clause exists to protect the interests of subcontractors and suppliers by giving them access to payment bond information, which is crucial for securing payment rights.
- Contractors must be prepared to respond quickly to requests and maintain copies of the payment bond for distribution.
- Failure to comply could result in disputes or claims from subcontractors or suppliers, and potential contractual remedies against the contractor.
As prescribed in 28.106-4(b), use the following clause:
Prospective Subcontractor Requests for Bonds (Dec 2022)
In accordance with section 806(a)(3) of Pub. L. 102-190, as amended by sections 2091 and 8105 of Pub. L. 103-355 (https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4601&num=0&edition=prelim" target="_blank">10 U.S.C. 4601 note prec.), upon the request of a prospective subcontractor or supplier offering to furnish labor or material for the performance of this contract for which a payment bond has been furnished to the Government pursuant to http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title40-chapter31&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank">40 U.S.C. chapter 31, subchapter III, Bonds, the Contractor shall promptly provide a copy of such payment bond to the requester.
(End of clause)