Federal rules for construction bonds over $35K up for sleepy renewal
Published Date: 10/1/2026
Notice
Summary
If you’re a contractor working with the federal government, you’ll want to know that some paperwork rules about bonds and payment protections are up for review and extension. These rules help make sure contractors provide the right guarantees on projects, especially construction ones over $35,000. Comments on these rules are open until November 2, 2026, so get ready to weigh in if this affects you!
Analyzed Economic Effects
8 provisions identified: 0 benefits, 8 costs, 0 mixed.
Performance and Payment Bonds for Large Construction Contracts
FAR 52.228-15 requires contractors to provide performance and payment bonds for construction contracts exceeding $150,000, using forms such as SF 25 and SF 25-A. This applies to any contractor awarded a federal construction contract above that $150,000 threshold.
Payment Protections for Small Construction Contracts
For construction contracts greater than $35,000 but not exceeding $150,000, FAR 52.228-13 requires contractors to submit one of the payment protections listed in the clause as chosen by the contracting officer. This affects contractors on small-to-mid-size federal construction jobs.
Bonds for Non-Construction Contracts Above SAT
FAR 52.228-16 requires performance and payment bonds for other-than-construction contracts in certain circumstances when the contract exceeds the simplified acquisition threshold (the rule references SF 1416 and SF 1418 among others). This affects contractors on larger non-construction federal contracts.
Bid Guarantees Required When Bonds Needed
If you submit a bid where a performance bond or a performance-and-payment bond is required, FAR 52.228-1 requires you to provide a bid guarantee in the proper form and amount (using Standard Form 24 or SF 34). This rule applies to offerors and contractors bidding on federal contracts.
Extra Bond Security Can Be Required
FAR 52.228-2 lets contracting officers require contractors to provide additional bond security in certain circumstances, for both construction and non-construction contracts (using forms such as SF 1414 and SF 1415). If asked, you must furnish that extra security.
Irrevocable Letter of Credit Information Requirement
FAR 52.228-14 requires offerors or contractors to provide certain information when they plan to use an irrevocable letter of credit (ILC) instead of a required bid bond or to secure performance/payment bonds. If you choose an ILC, you must submit the specified information.
Individual Sureties Must File SF 28
Standard Form 28 (Affidavit of Individual Surety) must be used by individuals who want to serve as sureties on Government bonds; contracting officers use SF 28 to decide if an individual is an acceptable surety. This affects people who choose to act as individual sureties for federal contracts.
Paperwork Burden: Respondents and Hours Reported
The submission reports 22,916 respondents, 22,926 total annual responses, and 22,912 total annual burden hours for these FAR part 28 information collections. If you are an affected offeror or contractor, these totals show the overall scale of paperwork covered by the clearance.
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