FAR and DFARS › FAR Part 28: Bonds and Insurance › Subpart 28.1
FAR 28.103-3 Payment bonds.
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 section explains when a payment bond is required on a contract. A payment bond is only needed if a performance bond is also required and if using a payment bond is in the Government's interest. If the contract price goes up, the Government may require extra bond protection to cover suppliers of labor and material.
Applies to: Government contracts that require performance bonds
Key terms: payment bond · performance bond · contract price · bond protection · suppliers of labor and material
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) A payment bond is required only when a performance bond is required, and if the use of payment bond is in the Government's interest.
(b) When a contract price is increased, the Government may require additional bond protection in an amount adequate to protect suppliers of labor and material.
← 28.103-2 Performance bonds. · 28.103-4 Contract clause. →
Rule changes for FAR Part 28
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 14, 28, 36, and 52 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-04-22 · effective 2024-05-22
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.