FAR 28.102-3—Contract clauses.
Plain-English Summary
FAR 28.102-3 tells contracting officers which payment-security clauses to include in construction solicitations and contracts, and when to use each one based on contract value and the type of payment protection required. It covers the clause at 52.228-15, Performance and Payment Bonds-Construction, for construction contracts expected to exceed $150,000 when performance and payment bonds are required, and the clause at 52.228-13, Alternative Payment Protections, for construction contracts with an estimated or actual value over $35,000 but not over $150,000. The section also explains that the contracting officer may lower the bond percentage in the 52.228-15 clause under 28.102-2(b) or lower the percentage in the 52.228-13 clause under 28.102-2(c). In addition, if the solicitation does not include the provision at 52.228-1, the contracting officer must set a deadline for return of executed bonds. In practice, this section ensures the Government selects the right payment-security mechanism for the size and risk of the construction acquisition and clearly tells offerors what protections must be provided and when.
Key Rules
Use 52.228-15 above $150K
For construction solicitations and contracts that require performance and payment bonds and are expected to exceed $150,000, the contracting officer must insert a clause substantially the same as 52.228-15, Performance and Payment Bonds-Construction. This clause governs the contractor’s obligation to furnish the required bonds.
Lower bond percentages if allowed
The contracting officer may revise paragraph (b)(1) and/or (b)(2) of 52.228-15 to establish a lower percentage when permitted by 28.102-2(b). Any reduction must be consistent with the bonding rules in that section, not simply a discretionary change.
Set bond return deadline if needed
If the solicitation does not include the provision at 52.228-1, the contracting officer must specify a time period for the contractor to return executed bonds. This prevents ambiguity about when bond documents must be submitted after award.
Use 52.228-13 for mid-range construction
For construction solicitations and contracts with an estimated or actual value exceeding $35,000 but not exceeding $150,000, the contracting officer must insert 52.228-13, Alternative Payment Protections. This clause is used instead of the full performance-and-payment-bond clause for this dollar range.
Specify selected protections and deadline
The contracting officer must complete 52.228-13 by identifying which payment protections are selected under 28.102-1(b)(1) and by stating the deadline for submission. Offerors need this information to know exactly what security they must provide.
Lower alternative protection percentage if allowed
The contracting officer may revise paragraph (b) of 52.228-13 to establish a lower percentage when permitted by 28.102-2(c). As with bond reductions, any change must follow the governing FAR authority.
Responsibilities
Contracting Officer
Determine the correct clause based on the construction contract’s expected or actual value and whether performance/payment bonds or alternative payment protections are required. Insert the proper clause, complete it with the required selections and deadlines, and apply any authorized percentage reductions only when allowed by the FAR.
Contractor
Review the solicitation and contract to identify the required payment-security clause, then furnish the required bonds or alternative payment protections by the stated deadline and in the form required by the completed clause.
Agency
Ensure acquisition personnel apply the correct FAR clause for construction contracts and follow the applicable bonding and payment-protection thresholds and percentage rules.
Practical Implications
This section is a clause-selection rule, so getting the dollar threshold wrong can make the solicitation noncompliant or create award delays.
The contracting officer must not leave the clause incomplete; the selected payment protections and submission deadline must be filled in, or contractors may not know what to provide.
If 52.228-1 is omitted, failing to set a bond-return deadline can create disputes over timeliness and award administration.
Any reduction in bond or protection percentages must be tied to the specific authority in 28.102-2(b) or (c); it is not a free-form negotiation point.
Contractors should check whether the acquisition uses full performance/payment bonds or alternative payment protections, because the required security and timing differ significantly between the two clause regimes.
Official Regulatory Text
(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).