Question 1

What are the key requirements for FAR 52.228-1: Bonds—Performance and Payment?

Accepted Answer

Requires contractor to post performance and payment bonds guaranteeing contract completion and subcontractor/supplier payment. Required for construction and large services contracts (typically >$150K).

Question 2

When does FAR 52.228-1 apply to a federal contract?

Accepted Answer

Required for construction and large services contracts (typically >$150K).

Question 3

What are the most common compliance issues with FAR 52.228-1?

Accepted Answer

Underestimating bond cost (can be 2-3% of contract value)

Losing bond coverage midway through contract (auto-default)

Not understanding surety can sue contractor for bond claims

Failing to notify surety of contract changes/delays

Question 4

How should contractors approach FAR 52.228-1 in their proposals?

Accepted Answer

Bonds are insurance the government forces you to buy. Get bonding capacity BEFORE bidding. Surety will require financial statements and references. Budget 2-3% of contract value. If you fail, surety pays government, then sues you for reimbursement + interest.

Question 5

What related FAR clauses should contractors review alongside FAR 52.228-1?

Accepted Answer

Contractors reviewing FAR 52.228-1 should also study related clauses: 52-249-1, 52-249-2. Understanding how these clauses interact helps avoid compliance gaps that can trigger contract disputes or disqualify bids.

Question 6

What happens if a contractor fails to comply with FAR 52.228-1?

Accepted Answer

Consequences depend on the clause, contract terms, and facts. Review the official text and the solicitation with your contracting officer or qualified counsel rather than assuming a standard penalty applies.

Bonds—Performance and Payment

Key Requirements

Common Issues & Pitfalls

Contractor Guidance for Your Bid

Related FAR Clauses

Everything You Need to Know Before Bidding

Have a specific question about your NAICS or team size?