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Code of Federal Regulations Title 2. Grants and Agreements § 2.200.326 Bonding requirements

Current as of January 02, 2025 | Updated by Findlaw Staff

For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold, the Federal awarding agency or pass-through entity may accept the bonding policy and requirements of the non–Federal entity provided that the Federal awarding agency or pass-through entity has made a determination that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:

(a) A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.

(b) A performance bond on the part of the contractor for 100 percent of the contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor's requirements under such contract.

(c) A payment bond on the part of the contractor for 100 percent of the contract price. A “payment bond” is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 2. Grants and Agreements § 2.200.326 Bonding requirements - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-2-grants-and-agreements/cfr-sect-2-200-326/

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