FAR and DFARS › DFARS Part 228: Bonds and Insurance › Subpart 228.1
DFARS 228.102-70 Defense Environmental Restoration Program construction contracts.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This DFARS section sets special rules for performance bonds on Defense Environmental Restoration Program construction contracts awarded under 10 U.S.C. 2701. It limits who can sue on the bond, caps the surety's liability, and shields the surety from personal injury or property damage claims. It matters because it changes the normal bond risk and recovery rules for these contracts.
Applies to: Defense Environmental Restoration Program construction contracts under 10 U.S.C. 2701
Key terms: performance bond · obligee · surety · penal sum · default
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
For Defense Environmental Restoration Program construction contracts entered into pursuant to 10 U.S.C. 2701—
(a) Any rights of action under the performance bond shall only accrue to, and be for the exclusive use of, the obligee named in the bond;
(b) In the event of default, the surety's liability on the performance bond is limited to the cost of completion of the contract work, less the balance of unexpended funds. Under no circumstances shall the liability exceed the penal sum of the bond;
(c) The surety shall not be liable for indemnification or compensation of the obligee for loss or liability arising from personal injury or property damage, even if the injury or damage was caused by a breach of the bonded contract; and
(d) Once it has taken action to meet its obligations under the bond, the surety is entitled to any indemnification and identical standard of liability to which the contractor was entitled under the contract or applicable laws and regulations.
← 228.102-1 General. · 228.105 Other types of bonds. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.