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FAR ClauseInsurance & Bonding

FAR 52.228-15Performance and Payment Bonds — Construction

Requires construction contractors to furnish performance and payment bonds (typically each at 100% of contract value) on contracts exceeding the Miller Act threshold ($150,000).

When This Clause Applies

Required in federal construction contracts exceeding $150K (Miller Act). Lower thresholds may apply under agency supplements.

What This Means for Contractors

Contractors must obtain bonds from sureties on the Treasury's approved list (Circular 570). Bond cost is typically 0.5%-3% of contract value depending on credit and project risk. Inability to bond is a frequent disqualifier for small construction contractors.

Common Pitfalls

  • 1Not lining up bonding capacity before bidding
  • 2Using a surety not on Treasury Circular 570
  • 3Inadequate underwriting documentation (financial statements, project history)

Related Topics

FAR 52.228-15performance and payment bondsMiller Act bondsconstruction surety bonds federal

Need help complying with FAR 52.228-15?

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