FAR 52.228-15 Checklist: Estimating Federal Construction Bonds
Federal solicitations incorporate strict bonding provisions that estimators and trade subcontractors must understand before bidding. Under Acquisition.GOV's FAR 52.228-15 Performance and Payment Bonds-Construction, prime contractors face specific rules for securing performance and payment protection on federal construction projects. Whether you are pricing general conditions or bidding interior framing and ceilings, this checklist outlines the core requirements established under the clause.
Checklist Item: Verifying Penal Amounts at Contract Award
Estimators reviewing federal solicitations must verify how bond values are calculated when pricing surety coverage. Under Federal Acquisition Regulation 52.228-15, if a contract exceeds the threshold in Federal Acquisition Regulation 28.102-1(a) on the date of award, the offeror must supply both performance and payment protection. You can reference our overview of Miller Act Bonds on Federal Projects for statutory context on federal job sites.
- Performance Bond Penal Sum: Standard Form 25 must be furnished with a penal amount equal to 100 percent of the original contract price at the time of award.
- Payment Bond Penal Sum: Standard Form 25A must also carry a penal amount equal to 100 percent of the original contract price at contract award.
- Original Contract Price Definition: The original contract price is defined as the contract award price. For requirements contracts, it is the price payable for the estimated total quantity. For indefinite-quantity contracts, it is the price payable for the specified minimum quantity.
- Option Exclusions: The original contract price excludes the price of options, unless those options are exercised at the time of contract award.
Checklist Item: Handling Price Increases and Additional Bond Protection
Contract modifications and scope growth alter bonding obligations during construction. Federal Acquisition Regulation 52.228-15 explicitly addresses what happens when the contract price changes after award:
- Additional Protection Trigger: The Government may require additional performance and payment bond protection whenever the contract price increases.
- Bond Increase Percentage: The increase in bond protection generally will equal 100 percent of the increase in the contract price.
- Method of Securing Coverage: The Government may direct the contractor to either increase the penal amount of the existing bond or obtain an additional bond.
When estimators review adjustments to work, bond premiums tied to expanded contract values must be tracked, because the Government holds the authority to mandate matching 100 percent coverage on upward price changes.
Checklist Item: Screening Approved Sureties and Acceptable Security
Federal bonding requires specific, vetted security instruments. Solicitations governed by 52.228-15 Performance and Payment Bonds-Construction require bonds to be in the form of a firm commitment. Estimators and contractors should verify that proposed backing meets one of the following authorized paths:
- Treasury Circular 570 Corporate Sureties: Corporate sureties must appear on the listing published in Treasury Department Circular 570. The list is published in the Federal Register and maintained by the U.S. Department of the Treasury, Financial Management Service Surety Bond Branch (3700 East West Highway, Room 6 F01, Hyattsville, MD 20782).
- Individual Sureties: Individual sureties may be utilized to support the required commitments.
- Alternative Acceptable Security: Contractors may provide a postal money order, certified check, cashier's check, or irrevocable letter of credit.
- United States Obligations: In accordance with Treasury Department regulations, certain bonds or notes of the United States are acceptable.
For more details on different bond types and how underwriting works across bid packages, check our guide on Bid Bonds, Performance Bonds and Payment Bonds.
Checklist Item: Meeting Timing and Execution Deadlines
Securing surety approval is only part of the requirement; delivery timing is strictly enforced under the clause. Contractors must observe several operational rules:
- Deadline for Submission: All executed bonds must be furnished to the Contracting Officer within the time period specified in the Bid Guarantee provision of the solicitation, or as otherwise specified by the Contracting Officer.
- Work Commencement Limitation: Executed bonds must be delivered in any event before starting work on the project.
- Reinsurance Agreements: If reinsurance agreements are necessary, they must be furnished alongside the executed bonds to the Contracting Officer.
Failing to deliver bonds before mobilization can halt field operations before site activities begin.
Checklist Item: Guarding Subcontractor Payment Bond Rights
For trade contractors providing framing, drywall, ceilings, and other specialty installations, the payment bond serves as vital security. Federal Acquisition Regulation 52.228-15 incorporates protection under 40 U.S.C. 3133(c) regarding subcontractor waivers:
- Invalid Waivers: Any waiver of the right to sue on the payment bond is void unless strict statutory criteria are satisfied.
- Written Agreement Requirement: The waiver must be in writing and signed by the person whose right is waived.
- Timing Restriction: The waiver is void unless executed after such person has first furnished labor or material for use in the performance of the contract.
This statutory protection prevents prime contractors from forcing advance bond waivers in subcontract agreements prior to the furnishing of labor or materials on federal sites.
Sources
Published October 28, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.