FAR and DFARS › FAR Part 28: Bonds and Insurance › Subpart 28.1
FAR 28.106-8 Payment to subcontractors or suppliers.
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 limits when a contracting officer can authorize payment to subcontractors or suppliers from an irrevocable letter of credit or similar cash security. Payment is allowed only with a judicial determination, a signed notarized statement from the contractor, or a signed agreement between the parties. It matters because it restricts how these funds can be released, protecting the government from improper payments.
Applies to: Contracting officers authorizing payments to subcontractors or suppliers from ILC or cash equivalent security
Key terms: ILC · cash equivalent security · judicial determination · signed notarized statement · signed agreement
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
The contracting officer will only authorize payment to subcontractors or suppliers from an ILC (or any other cash equivalent security) upon a judicial determination of the rights of the parties, a signed notarized statement by the contractor that the payment is due and owed, or a signed agreement between the parties as to amount due and owed.
← 28.106-7 Withholding contract payments. · 28.200 Scope of subpart. →
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.