FAR 28.106-3—Additional bond and security.
Plain-English Summary
FAR 28.106-3 explains how agencies must document and obtain additional bond coverage when the original bond is no longer enough. It covers two situations: first, when the added coverage is backed in whole or in part by the original surety or sureties, and second, when the added coverage is backed by a new surety or by one of the alternative security methods allowed under FAR 28.204 instead of a corporate or individual surety. The section identifies the exact Standard Forms the agency must use in each case: SF 1415, Consent of Surety and Increase of Penalty, for increases involving the original surety; and SF 25, SF 1418, SF 25A, or SF 1416, depending on whether the bond is a performance or payment bond and whether the contract is construction or nonconstruction. In practice, this section ensures the government has a legally effective and properly documented increase in bond protection when the required penal sum must be raised after award or during performance. It matters because using the wrong form, or failing to match the form to the surety arrangement, can leave the government with defective security and create enforceability problems if the contractor defaults.
Key Rules
Use SF 1415 with original surety
If the additional bond coverage is secured in whole or in part by the original surety or sureties, the agency must use Standard Form 1415, Consent of Surety and Increase of Penalty. This form records the surety’s consent to the higher bond amount and is the required vehicle for increasing the existing surety-backed obligation.
Use bond form for new surety
If the additional bond coverage is secured in whole or in part by a new surety, the agency must use the applicable bond form rather than SF 1415. The correct form depends on the type of bond and contract involved.
Match form to bond type
For performance bonds, agencies must use SF 25 for construction contracts and SF 1418 for other-than-construction contracts. For payment bonds, agencies must use SF 25A for construction contracts and SF 1416 for other-than-construction contracts.
Alternative security allowed
When the additional coverage is secured by one of the alternatives in FAR 28.204 instead of a corporate or individual surety, the agency must use the same bond forms listed for new surety coverage. The section ties the documentation requirement to the alternative security method selected.
Local reproduction permitted
SF 1415 is authorized for local reproduction. Agencies may reproduce the form locally, but they must still use the prescribed form and capture the required consent and increase-of-penalty information.
Responsibilities
Contracting Officer
Determine whether additional bond coverage is required, identify whether the increase will be backed by the original surety, a new surety, or an alternative security method, and ensure the correct Standard Form is used.
Agency
Use the prescribed Standard Form for the specific bonding situation and maintain proper documentation of the increased bond coverage in the contract file.
Original Surety or Sureties
When the increase is secured by the original surety, consent to the increased penalty on SF 1415 so the existing bond obligation can be expanded.
New Surety
When a new surety is used, provide the required bond coverage on the applicable bond form and support the increased security obligation.
Contractor
Obtain and furnish the additional bond coverage required by the contract and coordinate with the surety or alternative security provider to ensure the proper form is executed.
Practical Implications
The main day-to-day issue is choosing the right form based on who is backing the added coverage and whether the bond is for performance or payment, construction or nonconstruction.
A common pitfall is using SF 1415 when the increase is actually backed by a new surety, or using the wrong performance/payment form for the contract type.
Contracting officers should verify that the increased coverage is legally effective before relying on it, especially if the original bond amount is no longer sufficient.
Because SF 1415 may be locally reproduced, agencies should still ensure the reproduced version is complete and consistent with the official form requirements.
This section is administrative but important: improper bond documentation can create gaps in protection if the contractor defaults or fails to pay subcontractors and suppliers.
Official Regulatory Text
(a) When additional bond coverage is required and is secured in whole or in part by the original surety or sureties, agencies shall use Standard Form1415 , Consent of Surety and Increase of Penalty. Standard Form1415 is authorized for local reproduction. (b) When additional bond coverage is required and is secured in whole or in part by a new surety or by one of the alternatives described in 28.204 in lieu of corporate or individual surety, agencies shall use Standard Form25 , Performance Bond; Standard Form1418 , Performance Bond for Other Than Construction Contracts; Standard Form25A , Payment Bond; or Standard Form1416 , Payment Bond for Other Than Construction Contracts.